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 🙂