Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Aurora – practice exam ACCA
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- November 30, 2021 at 12:21 pm #642037
Hello,
I am really struggling to understand some of the answers provided for Aurora (10 mark question) from the ACCA exam practice portal for Tax -UK.
(a) Inheritance tax (IHT) payable on Aurora’s estate
Let property (350,000 x 3) 1,050,000
Mortgages (115,000 x 2) (230,000)
Main residence 500,000
Chargeable estate 1,320,000
IHT liability (1,320,000 –150,000 –150,000) at 40%408,000I don’t understand the deduction of 150,000 x 2 from the IHT liability at the bottom, any guidance most welcome.
Additionally, I’m struggling with the next part to Aurora.
In calculating the PRR they provide this as part of the answer:
100,000 x (2 + 1.5)/15
150,000 x (12 + 1.5)/20I can’t determine where the 1.5 comes from that they use to make this calculation.
Would really appreciate some guidance on this, hope it makes sense.
Adam
December 20, 2021 at 10:58 am #644597Hi Adam – Firstly my apologies for not being available until now to answer your question – however I don’t seem to be able to find the question you refer to – again my apologies – would you send me a link please
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