Tx notes fa22 Final

June 2023 to March 2024 exams
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32. Nathan 
(a)
Nathan made the following lifetime gifts:
1.
23 October 2009
– A gift of £356,000 into a trust
2.
17 September 2016 
– A gift of £47,000 to his nephew on the occasion of his marriage
3.
14 February 2017 
– A gift to his civil partner of £100,000
4.
26 August 2017 
– A gift of £273,000 to a trust.
Calculate the IHT payable on the lifetime transfers assuming that Nathan pays any IHT due on 
the first transfer into trust and the trustees pay any IHT due on the second transfer into trust. 
Clearly state who is responsible for paying the tax and the due date for payment. 
The nil rate band is £325,000 from 2009/10 onwards.
(b) Nathan died on 30 November 2022 leaving the following estate:
Main residence valued at 
£500,000. 
(There was an interest only mortgage of £150,000 outstanding on this property).
Quoted shares in various companies valued at 
£120,000
Paintings valued at
£205,000
Motor cars valued at
£ 50,000
Building society accounts of
£ 36,000
Nathan had a life assurance policy on his own life from which the proceeds received were £105,000
Nathan had credit card debts of £2,500 and had also verbally promised to pay the £1,000 legal fees 
of a friend. Funeral expenses amounted to £5,000.
Under the terms of his will he left £100,000 to his civil partner Norris, £20,000 to his niece and the 
residue of the estate to his nephew.
Using the information from the part (a), calculate the IHT as a result of death on the lifetime 
gifts made by Nathan and the IHT on the death estate. 
Clearly state who is responsible for paying the tax, who su
ff
ers it and the due date for 
payment.



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