Hetty died in June 2020 leaving £20,000 to her son George and the £100,000 remainder of her estate to her husband Harold. Harold had gifted £18,000 to George in May 2018. Harold dies on 6 June 2021 leaving his entire estate to George. The estate comprised the Harold’s home, a small flat valued at £170,000, and other assets worth £680,000, giving a total estate value of £850,000. The IHT NRB for 2020-21 was £325,000. No other lifetime gifts were made. Required: Calculate the IHT liability on Harold’s death, showing your workings, and state the payment date for IHT.
Hetty died in June 2020 leaving £20,000 to her son George and the £100,000 remainder of her estate to her husband Harold. Harold had gifted £18,000 to George in May 2018. Harold dies on 6 June 2021 leaving his entire estate to George. The estate comprised the Harold’s home, a small flat valued at £170,000, and other assets worth £680,000, giving a total estate value of £850,000. The IHT NRB for 2020-21 was £325,000. No other lifetime gifts were made. Required: Calculate the IHT liability on Harold’s death, showing your workings, and state the payment date for IHT.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hetty died in June 2020 leaving £20,000 to her son George and the £100,000 remainder of her estate to her husband Harold.
Harold had gifted £18,000 to George in May 2018.
Harold dies on 6 June 2021 leaving his entire estate to George. The estate comprised the Harold’s home, a small flat valued at £170,000, and other assets worth £680,000, giving a total estate value of £850,000.
The IHT NRB for 2020-21 was £325,000.
No other lifetime gifts were made.
Required:
Calculate the IHT liability on Harold’s death, showing your workings, and state the payment date for IHT.
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