1. Shezan made a gross chargeable lifetime transfer of £305,000 in January 2014. He also transferred £1,900 to his friend Stevenson in January 2018. In August 2018, he makes a transfer of £390,000 to a trust for the benefit of his grandchildren. The trustees (donee) pay the tax arising from the gift.

How much lifetime inheritance tax will be payable in respect of his gift of £390,000? Shezan has not paid any tax on the gift made in January 2018 since it was covered by the annual exemption for the tax year 2017/18.

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Step 1 The exemption for the lifetime inheritance i... View the full answer