1. John made the following lifetime gifts during the tax year 2019/20:

1. Gift of cash to his wife £400,000
2. Gift of 10,000 shares to his son on his marriage.

Before giving gift of shares, John owns 16,000 shares (80% holding) in Jam Ltd.

The market value of Jam Ltd’s shares on the date of gift was as follows:

Holding	Market price per share
Up to 25%	£20
26% to 40%	£30
41% to 50%	£35
51% to 75%	£45
76% to 100%	£50

1. Explain the meaning of Taxable Person under Inheritance Tax. (100 words)

2. For the above scenario, you are required to calculate:

Transfer of Value and Gross Chargeable Amount after considering the relevant exemptions for the lift time gift.

3. Assume that John dies on 20/12/2021, calculate the tax on death for the lifetime gift and specify who pays the tax and the due date for the payment of tax.

Answer rating: 100% (QA)

A The term taxable person under inheritance tax refers to an in... View the full answer