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In part b) of the practice question when we have to do an additional tax rate of 26.08.2017 won’t it just be nil because all the NRB will be used for the amount of £270,000? But there have been further processes stretching up to taper relief.
And I also wanted to ask for 17.09.2016 are we assuming we have used up NRB for 23.10.2009 as they are within the boundaries of seven years? But isn’t the amount on 23.10.2009, an exempt amount as they go past seven years before the death of the person? So how is NRB used on that amount?
Hello
It would appear that the question has an error in it. The gift in 2009 should say 2010 and then the question and answer make sense.
I do apologise for this and I didn’t spot the error when updating the manual
Change the date and have another go and get back to me if there are any further problems
Hi Ma’am!
If we change the year for CLT of 273,000 from 2017 to 2016 (to fit in the 7 years NRB), then the chargeable transfers calculated in the given answers end up being incorrect.
The CLT on 26/08/16 will be done before 17/09/16 so the annual exemptions for current year and previous years will be used by the CLT making its chargeable amount 267,000 & the PET of 47,000 will only be eligible for the marriage exemption making its chargeable amount 46,000.
This change affects the entire answer.
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