ACCA Applied Skills · Taxation (UK) · Payment of inheritance tax
On death, the executors of Dara may elect to pay the IHT attributable to certain assets by instalments. For which of the following assets is the instalment option available?
The freehold shop qualifies because instalments are available on death for land and buildings, along with certain unquoted shares and business interests. Quoted minority shares, cash and a car do not qualify, so the tax on them must be paid in one sum.
- AA freehold shop owned by DaraCorrect
- BA minority holding of quoted shares
- CBank deposit balances
- DA motor car
Explanation
The instalment option on death is limited to specified assets, including land and buildings, as well as certain unquoted shares and business interests. A freehold shop is land and buildings, so it qualifies. A minority quoted shareholding, cash and a car do not qualify, so the tax on them is due in a single payment.
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