- This topic has 3 replies, 2 voices, and was last updated 2 years ago by
.
- Posts
Hello,
Please can you assist with Chapter 24, example 4. Specifically in lecture part 4, around 15 mins in we see a part of the answer relating to the chargeable estate of Joe.I follow the answer to
“Chargeable Estate £758,000”
but I do not understand what the next line “Gross Chargeable Transfers in 7 years before death £628,250” relates to.
I do understand however the “£583,000 @ 40%” line
Should both lines be £583,000? If not, what is the £129,750 difference between £758,000 and £628,250?
Many thanks
AdamHi Adam,
I’m on vacation right now and do not have access to my files.
I’ll answer your question when I get homeJill
Hi Jill,
Thank you for the update and no problem at all. Hope you have a great time.Adam
Hi
I’m home!Ok – so the chargeable estate is 758,000
Less residence nil rate band (175,000)
_______
Taxable 538,000Because the chargeable events in the previous 7 years of 628,250 have used up the nil rate band and it cannot be applied to the estate.
When I write the manual for next FA I will rewrite the end of the answer to make this clearer.
I hope that helpsJill
- You must be logged in to reply to this topic.