Tx notes fa22 Final

£
£
Land and buildings
X
Less: Mortgage
(X) 
X
Business owned by sole trader/partnership
X
Stocks and shares (including ISAs)
X
Government securities
X
Insurance policy proceeds (if deceased has policy on own life, include 
actual proceeds on death not MV just before death
X
Motor cars
X
Personal chattels
X
Debts due to the deceased
X
Cash at bank and on deposit (including ISAs)
X
X
Less: 
Debts due by the deceased (if legally enforceable and incurred e.g. not 
unenforceable gambling debts)
(X)
Outstanding taxes (e.g. IT, CGT due)
(X)
Funeral expenses (must be reasonable)
(X)
(X) 
Less: Exempt legacies to spouse/civil partner
(X)
Gross chargeable estate
X

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Procedure to calculate IHT on the death estate: 
(1)
Calculate lifetime IHT and death IHT on all gifts within seven years of death. 
(2)
Calculate the gross chargeable estate value. 
(3)
Calculate the amount of residence nil rate band (RNRB) available, if applicable. 
(4)
Calculate the amount of NRB available after deducting the value of GCTs (all PETS and CLTs) in 
the last seven years. 
(5)
Calculate the death tax on the excess at 40%. 
(6)
If required, state who will pay and the due date for payment
Example 3 
Hamish died on 1 May 2022. His death estate comprised the following: 
Hamish’s funeral expenses amounted to £2,500. 
He left his house to his wife and all remaining assets to his daughter. 
Hamish had made a lifetime gift of £100,000 cash to his daughter in September 2020 on the 
occasion of her wedding.