Annual exemption

Hi,

Here I want to note only There should be no annual exemption right?
because it is estate not a gift!

Thanks

Q
Maaya died on 26 April 2023 leaving an estate valued at £900,000.
Under the terms of her will, Maaya estate was left to her children.
The estate included a main residence valued at £350,000.

What is the inheritance tax liability?

£

Answer is

he inheritance tax (IHT) liability is:
Chargeable estate £900,000

IHT liability:
£500,000 at 0% (£325,000 NRB + £175,000 Residence NRB)
£400,000 *40% = £160,000