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)