(b) Andrew died on 30 November 2019 leaving an estate comprising of his main residence valued at £500,000 upon which there was an interest only mortgage of £150,000 outstanding on this property In addition, he owned: Quoted shares in various companies valued at £120,000 £205,000 £50,000 £36,000 Paintings valued at Motor cars valued at Building society accounts of Andrew had a life assurance policy on his own life from which the proceeds received were £105,000. Andrew 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 wife, £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 Andrew and the IHT on the death estate. Clearly state who is responsible for paying the tax, who suffers it and the due date for рауment.

(b) Andrew died on 30 November 2019 leaving an estate comprising of his main residence valued at £500,000 upon which there was an interest only mortgage of £150,000 outstanding on this property In addition, he owned: Quoted shares in various companies valued at £120,000 £205,000 £50,000 £36,000 Paintings valued at Motor cars valued at Building society accounts of Andrew had a life assurance policy on his own life from which the proceeds received were £105,000. Andrew 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 wife, £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 Andrew and the IHT on the death estate. Clearly state who is responsible for paying the tax, who suffers it and the due date for рауment.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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