Inheritance tax and capital gains tax for Paper P6 (UK) - part 1: self-test

Test your understanding

(1). Madox has sold a collection of vintage cars and will use the proceeds to purchase the whole of the share capital of XR3i Ltd, a company that manufactures engineering components. Madox is resident and domiciled in the UK.

What are the IHT and CGT implications for Madox?

(2). Cortina has received a gift of a painting from an elderly relative. Cortina and her relative are both resident and domiciled in the UK.

What are the IHT and CGT implications for Cortina?

Answers