BPP practice and revision kit - Inheritance tax - Q201 - James

BPP practice and revision kit - Inheritance tax - Q201 - James Hi I have a question regarding the above question in the BPP practice and revision kit please, on the death estate part of the question; Death estate Chargeable estate 870,000 –––––––– Inheritance tax liability 870,000 at 40% 348,000 –––––––– The personal representatives of James’ estate will be responsible for paying the inheritance tax of £348,000. Why do we not deduct the nil rate band for £325,000 for the estate and then charge 40%? Thanks :)