Newly recorded introduction followed by use of FA 2017 lecture
PET and CLT continued – ACCA Taxation (TX-UK) Exam FA2019
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Hello sir. Can I please ask why in illustration 11 the CLT is taxed at 20% as it is mentioned in the notes, but in illustration 12 it is taxed at 40%?
I think the solution of last example covered only one portion i.e lifetime trasnfers made within 7 years. The second part of solution would be chargeable estate at date of death which is not covered. Therefore, the answer of second part would be 300,000 – 150,000 (RNRB)= 150,000 @ 40% + (500,000-300,000)@40% i.e. 60,000+ 80,000 = 140,000/- . Please correct if I am wrong.
Does the RNRB not apply on the last example considering there was a main residence within the donor’s estate and it was to his daughter – a direct descendant ?
Yes I agree. The residence nil rate band was not applied in addition to the normal nil rate band?
It does apply but when calculating the death estate.