Editorial team AccountingWEB.co.uk
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Any Answers Answered: IHT and student fees

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TAXtv's Giles Mooney and Tim Good take another look through the pages of Any Answers and grapple questions on claiming residential nil rate band and another on private school fees. 

10th Sep 2021
Editorial team AccountingWEB.co.uk
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To view the full questions and AccountingWEB reader answers click on the links below:

Private school fees

AccountingWEB reader Joni Barnes has a question on school fees. They have a client with 50 shares in a profitable trading company and his mother has the other 50.

A friend has suggested that if they gave shares, five each, to his nine year old daughter, then you can pay this child a dividend and that dividend would be covered by her annual allowance. He then gets the money out of the company tax free to pay the fees.

But Joni points out, they know this doesn’t work out where the parent is concerned but is it OK if granny moves some shares to the daughter?

IHT residential nil rate band

The next question comes in from Ray Lewin. “The client wishes to be assured that their executors can claim residential nil rate band on their death if leaving to their half-sister and half-brother. 

“The client acted as guardian/ foster parent on the death of both the twin's parents when twins were 13 for some years until they reached 18. The client initially looked after them at their house and subsequently at her own house.”

The question is, on the basis that they’re half brother and half sister, would leaving the property to them give us the residential lower rate band? And, is it the foster parent part of the question that tips us over into the qualification.

TAXtv is a monthly tax update programme available as an annual subscription, (11 issues plus budget editions) to view online, download from the internet or watch on DVD. For the latest episode of TAXtv visit PTP Interactive.​

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