Incidence of tax on residuary gifts

Produced by a Tolley Trusts and Inheritance Tax expert

Trusts and Inheritance Tax

Guidance

What is a residuary gift?

In the context of a disposition by Will, a residuary gift is a gift of a share of what is left of the free estate after liabilities, expenses and specific gifts have been paid. See the Incidence of tax on specific gifts guidance note. If there are no specific gifts, the whole estate is comprised of one or more residuary gifts. In the context of intestacy, where the deceased was survived by a spouse or civil partner, the residue is the balance of the estate after deducting the chattels and statutory legacy. See the Intestacy guidance note.

The features described in this guidance note apply to a gift of residue of the free estate. They do not generally arise in other components of the death estate, such as joint property or gifts with reservation. The transfer of settled property in which the deceased had a qualifying interest in possession could be divided into specific gifts and residue and similar considerations apply. However, residuary gifts of settled property

Access this article and thousands of others like it
free for 7 days with a trial of Tolley+™ Guidance.

TAKE A FREE TRIAL

Popular Articles

Corporation Tax

Carried-forward losses restriction

Carried-forward losses restrictionOverview of the carried-forward loss restrictionAn important restriction in the use of losses carried forward was introduced by Finance (No 2) Act 2017. Subject to a de minimis of £5m (known as the deductions allowance), most carried-forward losses are restricted to

14 Jul 2020 11:09 | Produced by Tolley Read more

Corporation Tax

Double tax relief

Double tax reliefWhen income arises in a foreign country to a UK resident company and that income is taxable in that foreign country, the UK may give the company relief for the foreign tax by crediting the foreign tax against the UK tax charged on that income. This might include withholding tax on

14 Jul 2020 11:31 | Produced by Tolley in association with Anne Fairpo Read more

Exemption ― insurance ― overview

Exemption ― insurance ― overviewThis guidance note provides an overview of the VAT treatment of insurance products and should be read in conjunction with the Insurance ― specific transactions and Exemption ― insurance ― brokers and agents guidance notes.Is insurance exempt from VAT?Supplies of

��˾��ҹ��