Calculating the chargeable estate: calculation where residue partly chargeable and no chargeable specific gifts
If a share of the residue (IHTM26003) is the only part of the deceased’s estate which is taxable, in practice you can calculate the chargeable part of the estate by:
- firstly, deducting the value of any exempt specific gifts (IHTM26011), and
- then apportioning the balance of the estate between the beneficiaries in the ratio to which they are entitled to share in the residue
The amount apportioned to the chargeable beneficiaries is the chargeable estate.
Baldev dies in July 1999 leaving an estate of £600,000. There is no relievable property.
Under his Will he leaves:
Your calculation to find the amount of the chargeable residue is
|Value of estate||£600,000|
|Less exempt legacy||-£30,000|
|Chargeable half share||£285,000|
Please note that, if the estate includes relievable property, interaction (IHTM26101) will apply.