He Brat fetime pilt on 4 May 2015 was to a trust and this resulted in a gross changeable transfer of £300,000. This is after deducting all available exemptions. On 6 March 2017, Diego made a gift to his grandson of 5,000 out of the 14,000 £1 ordinary shares he owned in Pedazo Ltd, an unquoted investment company. This
He Brat fetime pilt on 4 May 2015 was to a trust and this resulted in a gross changeable transfer of £300,000. This is after deducting all available exemptions. On 6 March 2017, Diego made a gift to his grandson of 5,000 out of the 14,000 £1 ordinary shares he owned in Pedazo Ltd, an unquoted investment company. This
Chapter8: Trusts
Section: Chapter Questions
Problem 2CTD
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Transcribed Image Text:Diego died on 20 November 2021.
His first lifetime gift on 4 May 2015 was to a trust and this resulted in a gross
chargeable transfer of £360,000. This is after deducting all available exemptions.
On 6 March 2017, Diego made a gift to his grandson of 5,000 out of the 14,000 £1
ordinary shares he owned in Pedazo Ltd, an unquoted investment company. This
was a wedding gift on the occasion of his grandson's marriage. Pedazo Ltd has an
issued share capital of 20,000 £1 ordinary shares. On 6 March 2017, each share in a
majority holding (over 50%) was worth £12.50, and each share in a minority holding
(50% or less) was worth £8.70.
On 8 January 2019, Diego gave some antique furniture to his granddaughter. The
furniture was valued at £58,000 at the date of the gift.
Diego's assets at the date of his death were valued at £798,700. His funeral
expenses amounted to £3,700. Under the terms of his will, Diego left £655,000 to his
wife, a specific legacy of £100,000 to his daughter, and the residue of the estate to
his grandson.
For Inheritance tax purposes, what was the amount of the transfer of value (before taking account
of any exemptions) of Diego's gift of 5,000 ordinary shares in Pedazo Ltd on 6 March 20177
£
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