Attribution process: death estate
Death in February 2002. The deceased is the transferor in the lifetime transfer example (IHTM30312). The death estate is wholly chargeable and consists of:
|1||A business dealing in property||£300,000|
|Value of estate for IHT||£590,000|
|Tax on £990,000||£299,200|
|Less tax on £400,000 at death rates||-£63,200|
|Tax due on estate||£236,000|
- Proportion of tax on business (£300,000)(300 ÷ 590) x £236,000 = £120,000
This £120,000 is payable by instalments and as it is a business, although it does not qualify for Business Relief (IHTM25130) because of IHTA84/S105 (3), the instalments are interest free (IHTM30363).
- Proportion of tax on value of house (£150,000)(150 ÷ 590) x £236,000 = £60,000
- Proportion of tax on value of quoted investments (£140,000)(140 ÷ 590) x £236,000 = £56,000
This is payable in one sum.