In July 2019, Mary died and left an inheritance of €1m to her son, Bill, in her will. Assuming he has not previously received a gift or inheritance from any source, Bill's inheritance tax liability will be:

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Enhance your understanding of financial advising with the Qualified Financial Adviser (QFA) Loans Exam 1 Test. Prepare with detailed questions, hints, and explanations to ace your exam!

Multiple Choice

In July 2019, Mary died and left an inheritance of €1m to her son, Bill, in her will. Assuming he has not previously received a gift or inheritance from any source, Bill's inheritance tax liability will be:

Capital Acquisitions Tax applies to gifts or inheritances, with a tax-free threshold that depends on the beneficiary’s relationship to the disponer. For a child of a parent (Group A), the threshold is €320,000. Since Bill has not previously received any gifts or inheritances, the full €320,000 is tax-free. The amount above that threshold is €1,000,000 − €320,000 = €680,000, and CAT is charged at 33% on that excess. So the tax due is 0.33 × €680,000 = €224,400.

In July 2019, Mary died and left an inheritance of €1m to her son, Bill, in her will. Assuming he has not previously received a gift or inheritance from any source, Bill's inheritance tax liability will be:

Enhance your understanding of financial advising with the Qualified Financial Adviser (QFA) Loans Exam 1 Test. Prepare with detailed questions, hints, and explanations to ace your exam!

In July 2019, Mary died and left an inheritance of €1m to her son, Bill, in her will. Assuming he has not previously received a gift or inheritance from any source, Bill's inheritance tax liability will be:

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