• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

June 2025 ACCA Exams

How was your exam? Comments & Instant poll >>

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

NRB UTILIZATION

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › NRB UTILIZATION

  • This topic has 1 reply, 2 voices, and was last updated 2 years ago by JillyB.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • May 21, 2023 at 2:32 pm #684779
    hotteto
    Participant
    • Topics: 8
    • Replies: 10
    • ☆

    Nadia died on 13 February 2004, leaving an estate valued at £275,400 for inheritance tax purposes. Nadia left 50% of her estate to her son and 50% to to her husband, Tareq.
    Tareq subsequently died on 17 January 2023.
    Neither Nadia nor Tareq made any lifetime gifts.
    The inheritance nil rate band for the tax year 2003-04 was £255,000.
    What is the maximum available nil rate band which can be used when calculating the inheritance tax payable in respect of Tareq’s estate?

    Nil rate band at Nadia’s death 255,000
    Band utilised on Nadia’s death (£275,400 x 50%) (137,700)
    Unused NRB on Nadia’s death 117,300
    Percentage of NRB unused (£117,300/£255,000) 46%
    Tareq’s NRB in 2022-23 325,000
    Transfer of Nadia’s unused NRB (£325,000 x 46%) 149,500
    Total NRB available 474,500

    WHY THE BAND IS USED ONLY FOR 137,400£ AT NADIA’S DEATH? HOW DOES THE FACT THAT HALF OF HER ESTATE IS GIVEN TO HER SON AFFECTS THE BAND UTILIZATION?

    May 22, 2023 at 11:23 am #684805
    JillyB
    Keymaster
    • Topics: 0
    • Replies: 899
    • ☆☆☆☆

    The NRB changes and therefore it is not the amount of NRB that isn’t used that is transfered but the % unused.
    The transfer of hald the estate to her husband is exempt from IHT therefor only half of the estate (275,400/2) is taxable to IHT
    275,400/2 = 137,700
    NRB (137,700) – so no tax due at death.

    NRB – 255,000 less used 137,700 leaves 117,300 – ie 46%

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • manahylilyas on The financial management environment – ACCA Financial Management (FM)
  • poojam on Objective of financial reporting – ACCA Financial Reporting (FR)
  • mm3677 on IAS 16 Accounting for a revaluation – CIMA F1 Financial Reporting
  • Anastesia123 on MA Chapter 1 Questions Accounting for Management
  • John Moffat on MA Chapter 26 Questions Variance Analysis

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in