Inheritance Tax – utilised inheritance tax NRB

Dear tutor.

My question is how to understand it correctly with the gifts in February 2021?

I understand that that gift utilised the NRB, however, at the time of the gift, it was just a PET. For my calculation, I projected the amount should be £331,000 (which will cancel off the NRB after the deduction of 2 times annual exemptions of £6,000 in total).

Therefore, at the time of her death, the gift on 23.08.17 became chargeable with the GCT of £409,000 and IHT of £33,600 which is correct. The GCT c/f is: £409,000 (£409,000 +£0 – as no CLT before) which was utilised for the above gift of £331,000 in Feb 2021. So, I came up with the value of IHT of £130,000 which was not correct.

What should I pay attention to in order to avoid such misunderstanding?

Thank you!

“On 23 August 2017, Anna transferred a house worth £416,000 to her nephew, Filip, as a wedding gift on the occasion of his marriage.

Anna’s only remaining asset is her current main residence, which is valued at £500,000 and is mortgage-free. According to her will, the whole of her estate is left to her children.

Anna’s husband, Alex, died on 15 August 2021, leaving his entire estate to Anna.

In February 2021, both Anna and Alex made lifetime gifts to their children that fully utilised their respective inheritance tax nil rate bands of £325,000.

Calculate the inheritance tax payable on Anna’s death if she were to pass away on 6 April 2023.”