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3.STEVEN (a) This scenario relates to two requirements. Inheritance tax legislation does not actually contain a definition of who is, and who is not, a chargeable person. Required: 1) Explain whether or not a married couple is treated as a chargeable person for inheritance tax purposes. (1 mark) 2) State the special inheritance tax measures which are applicable to married couples. ( 2 marks) (b) This scenario relates to one requirement. Steven died on 29 December 2022. He had made the following gifts during his lifetime: (1) On 15 January 2011, Steven made a chargeable lifetime transfer of 317,000 to a trust. After applying the available nil rate band, the trustees paid the lifetime inheritance tax of 8,400 which arose in respect of this gift. The Gross Chargeable value was above 325,000 . (2) On 5 December 2017, Steven made a lifetime transfer of 399,000 before exemptions to another trust. In addition to the gift, Steven paid the related lifetime inheritance tax of 97,750 on this gift. (3) On 17 March 2017, Steven made a gift (a potentially exempt transfer) of 30,0001 ordinary shares in Saturn Ltd, an unquoted investment company, to his daughter. Before the transfer, Steven owned all of Saturn Ltd's issued share capital of 100,0001 ordinary shares. On 17 March 2017, Saturn's Ltd's shares were worth 5 each for a holding of 30%,9 each for a holding of 70%, and 12 each for a holding of 100%. The nil rate band for the tax year 2010/2011 is 275,000, and for the tax year 2017-18 it is 325,000. Under the terms of his will, Steven left his entire estate to his wife. Required: (A) Calculate the inheritance tax which will be payable as a result of Steven's death. Note: You should ignore the inheritance tax annual exemption. (7 marks) 3.STEVEN (a) This scenario relates to two requirements. Inheritance tax legislation does not actually contain a definition of who is, and who is not, a chargeable person. Required: 1) Explain whether or not a married couple is treated as a chargeable person for inheritance tax purposes. (1 mark) 2) State the special inheritance tax measures which are applicable to married couples. ( 2 marks) (b) This scenario relates to one requirement. Steven died on 29 December 2022. He had made the following gifts during his lifetime: (1) On 15 January 2011, Steven made a chargeable lifetime transfer of 317,000 to a trust. After applying the available nil rate band, the trustees paid the lifetime inheritance tax of 8,400 which arose in respect of this gift. The Gross Chargeable value was above 325,000 . (2) On 5 December 2017, Steven made a lifetime transfer of 399,000 before exemptions to another trust. In addition to the gift, Steven paid the related lifetime inheritance tax of 97,750 on this gift. (3) On 17 March 2017, Steven made a gift (a potentially exempt transfer) of 30,0001 ordinary shares in Saturn Ltd, an unquoted investment company, to his daughter. Before the transfer, Steven owned all of Saturn Ltd's issued share capital of 100,0001 ordinary shares. On 17 March 2017, Saturn's Ltd's shares were worth 5 each for a holding of 30%,9 each for a holding of 70%, and 12 each for a holding of 100%. The nil rate band for the tax year 2010/2011 is 275,000, and for the tax year 2017-18 it is 325,000. Under the terms of his will, Steven left his entire estate to his wife. Required: (A) Calculate the inheritance tax which will be payable as a result of Steven's death. Note: You should ignore the inheritance tax annual exemption. (7 marks)

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