Question 1

Section B - Case 2: Bramble Farms

Arthur owns Bramble Farms, a working agricultural estate. He decides to gift the entire estate to his daughter, Beatrice, during his lifetime. The estate includes agricultural land, a farmhouse occupied by Arthur, and various farm machinery.

If IHT becomes payable on the agricultural land due to Arthur's death within 7 years of the gift, Beatrice can elect to pay the IHT in annual installments. Over how many years can these installments be spread?

Accepted Answer

Recall the IHT installment payment rules for qualifying assets (land, buildings, businesses, unquoted shares).

Question 2

What mistakes do candidates make on this ACCA question?

Accepted Answer

Confusing the 10-year installment period with the 7-year PET accumulation period.

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA TX — Taxation Practice Exam 4

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