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its in Kaplan and the answer is b and in the answers they did not deduct 50000 from the nil rate band I want to know the reason for that,
does the nil rate band gets renewed after 7 years its not like this in other questions.You should assume that today’s date is 1 March 2022.
Lebna and Lulu were a married couple, but, unfortunately, Lulu died on 24 January 2017.
Lulu
Lulu left an estate valued at £210,000 for inheritance tax (IHT) purposes. The estate did not
include a main residence. Under the terms of her will, Lulu left a specific legacy of £40,000 to
her brother, with the residue of the estate to her husband, Lebna. Lulu had made the
following lifetime transfers:
Date Type of transfer Amount
£
13 February 2009 Chargeable lifetime transfer 50,000
21 June 2015 Potentially exempt transfer 80,000
Both of these transfers are after taking account of all available exemptions.
The nil rate band for the tax year 2016/17 is £325,000.
Lebna’s chargeable estate
Lebna has a chargeable estate valued at £980,000. His estate includes a main residence
valued at £340,000 on which there is an outstanding interest?only mortgage of £152,000.
Under the terms of his will, Lebna has left his entire estate to his son.
Gift to son on 22 February 2017
On 22 February 2017, Lebna made a gift of 60,000 £1 ordinary shares in Blean Ltd, an
unquoted investment company, to his son. Before the transfer, Lebna owned all of Blean
Ltd’s share capital of 100,000 ordinary shares. The market value of Blean Ltd’s ordinary
shares on 22 February 2017 was as follows:
Holding Market value per share
40% £4.20
60% £6.30
100% £7.10
Lebna had not made any previous lifetime gifts.
Gifts to friends during October 2021
Lebna made cash gifts of £85, £225, £190 and £490 to various friends during October 2021.
The gifts of £85 and £190 were to the same friend.1 If Lebna were to die today, 1 March 2022, how much of Lulu’s nil rate band will the
personal representatives of Lebna’s estate be able to claim when calculating the IHT
payable on his chargeable estate?
A £155,000
B £205,000
C £35,000
D £285,000this is the updated question.
that is ok that it has been more than seven years but does the nil rate band of 325000 also gets renewed if it has been more than seven years of death to chargeable life time transfer of 50000 or did they not consider this band at the time and just paid 25% of amount in 2009
1 If Lebna were to die today, 1 March 2022, how much of Lulu’s nil rate band will the
personal representatives of Lebna’s estate be able to claim when calculating the IHT
payable on his chargeable estate?
A £155,000
B £205,000
C £35,000
D £285,000
I went throught chapter 24 chapter 9 example 2 but i still do not understand why
(13 February 2009 Chargeable lifetime transfer 50,000) this transfer is not deducted from nil rate band.kindly explain this to me.
Failed third time, idk where i do wrong, stuck here.sad coz i know i studied everytime to my best
dear tutor, when in a question there are general fixed costs and directly attributable fixed costs does that mean that directly attributable is a part of general fixed cost, or are they different?
sir, but the variable cost for the cafe is also not given; we are given sales per customer and profit margin and the profit margin is taken as contribution in this question. how is this possible?
Sir, isn’t the receiving bank your own bank to which you give instruction to pay to the beneficiary’s bank?
sir, if in the first question mentioned above there is (favourable) total fixed cost variance in place of sales price variance, will we add it or not to find sales price price variance to find the actual contribution or not? and why?
(a) State if the following items relating to Mrs Glam’s decision how to expand are
relevant or irrelevant cash flows in a net present value calculation:
(i) The $3,000 market research fee (1 mark)
(ii) Depreciation of $625 per year for the new shop fittings. (1 mark)
(iii) The costs of $1,500 incurred in moving to the new premises. (1 mark)
(b) Calculate the present value of the INCREMENTAL contribution cash flow that will
arise if option 2 is compared to option 1. (2.5 marks)
(c) Calculate the present value of the cash flows relating to the INCREMENTAL rates
that will arise if option 2 is compared to option 1.sir, the statement i saw in kaplan book is different from the one mentioned above and I don’t understand it either way please explain me (b) and (c).
sir, I’ve got these type of questions in section b of my exam and I marginally failed the exam but now I am not able to find questions like this one. can you suggest some source? I have got 87% in open tuition mock and also in all other mocks I gave I got marks at least more than 74% but still failed. its been a week im shattered, please enlighten me on my next steps.
sir, the thing is if I do a gradually calculation like if I calculate hours required per unit by dividing total standard hours by total standard unit and then multiplying the same with actual units producing and then proceeding the question from there then I am getting a different result. why? please tell me.
