SECTION 4 Q & A ANSWERS TO MOCK EXAMQUESTIONS 1 (A) MARK KETT –...

600,000

Nil rate band

(325,000)

‒‒‒‒‒‒‒‒

Chargeable

275,000

IHT due £275,000 x 20/80 = £68,750

Gross chargeable transfer carried forward £668,750 (600,000 + 68,750).

Additional liability on death

£

Gross chargeable transfer

668,750

Chargeable

343,750

IHT due £343,750 x 40%

137,500

Less paid during lifetime

(68,750)