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F6 – Nil Rate Band question – BPP Question 28 Artem

Forums › ACCA Forums › ACCA TX Taxation Forums › F6 – Nil Rate Band question – BPP Question 28 Artem

  • This topic has 2 replies, 2 voices, and was last updated 10 years ago by sidrajam.
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  • October 25, 2014 at 5:30 pm #205947
    sidrajam
    Member
    • Topics: 28
    • Replies: 13
    • ☆

    Below are the relevant parts of the question which I am doing wrong.

    My question is for gift on “17 January 2009” why they used “323,000” rather “336000” which is actually gift amount given in question?

    ——————————————————————————————–
    QUESTION – 28 Artem

    Artem died on 15 December 2013. During his lifetime he made the following cash gifts:

    Date Donee £
    10 December 2005 Daughter 65,000
    17 January 2009 Trust (Artem paid the lHT) 336,000
    15 February 2010 Nephew 200
    18 August 2010 Sister 49,000

    Required

    (a) Explain the inheritance tax implications of these gifts during Artem‘s lifetime and compute any lifetime inheritance tax payable.

    Nil rate bands
    2005/06 £275,000
    2008/09 £312,000
    2009/10 onwards £325,000

    BPP ANSWER:

    17 January 2009

    The first £6,000 of this transfer is an exempt transfer because of the annual exemptions for 2008/09 and 2007/08.

    The remaining £(323,000 – 6,000) = 317,000 Is a chargeable lifetime transfer because it is not a transfer to another individual.

    This Is the first chargeable transfer that Artem makes and so the nil rate band is available in full.

    The inheritance tax on this transfer ls: 317.000

    Net transfer of value (Artem pays lHT)
    IHT £312,000 x 0% = Nil
    £5,000 x 20/80 = 1.250

    Total IHT = 1 .250

    November 4, 2014 at 12:55 pm #207639
    Robert
    Member
    • Topics: 58
    • Replies: 175
    • ☆☆☆

    did you get a reply to this?

    I was thinking the exact same……….hopefully its a typo, if not im stumped!

    November 4, 2014 at 3:19 pm #207660
    sidrajam
    Member
    • Topics: 28
    • Replies: 13
    • ☆

    No, not yet. 🙁

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