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(b) Computation of IHT on lifetime transfers chargeable on death - 30 November, 2022 Nathan Chargeable Estate at death – 30 November, 2022 The tax is payable by the Personal Representatives (Executors) and is borne by the residuary legatee
(Nathan’s nephew).
Note - legal fees of friend not allowable deduction as not legally enforceable debt and as the
mortgage is not an endowment mortgage it is deducted from the value of the property.
No residence nil rate band available as main residence does not pass to a direct descendant.
Gross IHT GCT’s in 7 years before 17/09/2016
356,250
–
17/09/2016 PET
40,000
16,000
All £325,000 NRB deemed used = 40,000 @ 40%
396,250
Less: Taper relief (80%)
(12,800)
Tax payable and borne by donee (nephew)
3,200
26/08/2017 CLT
270,000
108,000
GCT’s in previous 7 years exceed NRB
666,250
270,000 @ 40%
Less: Taper relief (60%)
-64,800
Less: Lifetime Tax Paid
(54,000)
Additional Tax Due on Death
nil
23/10/2017 GCT (23/10/2008) Removed from cumulative
total
(356,250)
GCT’s in 7 years before death
310,000
£ £ Property
500,000
Less: Mortgage (Note)
(150,000)
350,000
Quoted shares
120,000
Paintings
205,000
Cars
50,000
Building Society Accounts
36,000
Life insurance proceeds
105,000
Less:
Debts (Note)
2,500
Funeral expenses
5,000
(7,500)
Less:
Exempt transfers
Civil partner
(100,000)
758,500
NRB available @ death (325,000 - 310,000)
15,000
15,000 @ Nil
Nil
Balance of Estate
743,500 @ 40%
297,400
758,500
354
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