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Hello Sir
I didn’t understand the calculation iin illustration 6 from IHT chapter.Can you please explain me how the value 200,000 popped?
Warm Regards
I think here you must be referring to the “residence nil rate band” applied of 200,000
The introduction to the illustration states how that any unused proportion of the residence nil rate band may transfer from one spouse to another just as does the normal nil rate if it is unused by a a spouse.
In this example Dee’s husband had died having used all of his normal nil rate band, hence in the answer only her 325,000 nil rate band is applied but her husband had not used any residence nil rate band so it was 100% unused hence she benefits from a 200,000 residence nil rate band instead of just her own 100,000.
The lectures on IHT are now being processed so will be available online very soon which I hope will help you with your IHT studies.
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