Your firm has been asked to provide advice in connection with inheritance tax and capital gains tax following the death of Cada.

Cada and her family:
– Cada, who was UK domiciled, died on 20 November 2014.

Cada – Lifetime gifts and available nil rate band:
– Cada had not made any lifetime gifts since 30 November 2010.
– Cada’s nil rate band available at the date of her death was £220,000.

Cada’s shareholdings at the time of her death:
– Quoted shares in JW plc valued at more than cost.
– Quoted shares in FR plc valued at less than cost.
– Unquoted shares in KZ Ltd valued at £nil.

Required:
(a) Explain the inheritance tax advantages, other than lifetime exemptions, which could have been obtained if Cada had made additional lifetime gifts of quoted shares between 1 December 2010 and her death. (4 marks)