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Hi I am just working through the example on pg 149 open tuition notes.
Lifetime transfer on death for Joe Kerr
you have used the tax rate (325,000 – 29,000) – is this correct? I thought we were working with the 2008 figure nil rate band 312,000.
confused me a little – please can someone explain.
tyvm.Have you read and worked through the notes and examples that lead up to this example and/or listened to the lecture before attempting this exercise?
If you check the answer you will see that when we compute the tax that was payable on the CLT at the time the transfer was made we must of course use the nil rate band that was in force at that date – this is the first computation headed “Lifetime transfers chargeable when made”, but when computing the tax that was payable as a result of the taxpayer’s death then we must always use the nil rate band that existed at the date of death!
Hope this helps
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