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Dear Jill,
Please consider the excerpt and the following questions:EXCERPT:
“Aurora died on 6 April 2023
Aurora’s husband, Andrew, died on 15 August 2021, with all of his estate left to Aurora.
During February 2021, Aurora and Andrew both made lifetime gifts of assets to their children
which fully utilised their respective inheritance tax (IHT) nil rate bands of £325,000. ”QUESTION:
Why is the NRB @ death of Aurora already fully used up AS PER THIS EXCERPT??MY ASSUMPTION:
I understand that Andrew’s NRB “at death” (in 2021) has been fully used up as he died in that year (2021); but what about Aurora?
She did not die in 2021, she only made a lifetime gift in that year and fully used up her NRB @ gift.
This means she does have a NRB @ DEATH. in 2023.Reference: Q217 (a); Kaplan Kit.
The question says “2021” but Aurora died in 2023, PLUS, the NRB referred to in the question is “NRB @ gift” to Aurora and “NRB @ Death” to her husband because he died in that year
I understand TX mainly due to your lectures. Please pardon my it-should-be-obvious questions
The question clearly says that the lifetime gifts used up the NRB so they want you (basically) to ignore it and work the tax out without considering it.
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