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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?
If 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.
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