Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › specimen exam
- This topic has 2 replies, 2 voices, and was last updated 9 years ago by Victoria.
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- November 4, 2015 at 2:32 am #280399
sir, I’ve got another question, as for the q2 of the specimen exam. why we deducted the gift figure of 220,000 from the estate amount when calculating the inheritance tax liability? how are they related to each other?
and for the q4: we didn’t account for Class 2 NIC (143) in our calculation of payments. why’s that?
also, I don’t remember if I’ve asked you this one: who and how identify the market value of assets for the tax purposes in practice?
November 8, 2015 at 10:42 am #281107If you had worked through the OT notes and lectures then you would know that when calculating the IHT on the chargeable estate we need to compute how much if any of the nil rate band is still available to be used, as it is firstly applied against the lifetime transfers made within the 7 years before death. The 220,000 PET will have used that amount of the nil rate band!
Q.4 asks for the payments on account and balancing payment – Class 2 NIC’s are not paid through this system but are paid separately.November 8, 2015 at 11:18 am #281113shame on me, I’ve definitely missed that part in your notes. didn’t come across the systems of NIC payments though.
thank you for your help!
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