I10.219 Burden of tax—Examples
These examples illustrate the points made in I10.209–I10.218.
Example 1—Calculating the burden of tax
X died on 5 June 2019 owning the following assets:
Land in the UK worth £280,000, left to A.
Foreign property worth £100,000, left to B.
Foreign property worth £50,000, left to C. The legacy was declared by X's Will to be free of IHT.
Other free estate in the UK valued at £330,000. X's Will left pecuniary legacies totalling £120,000.
X was also the joint owner of UK property, his share of which was valued at £40,000.
X had made no lifetime gifts, and no exemptions or reliefs were available on his death.
The IHT payable on X's death is:
|Foreign property subject to tax||100,000|
|Foreign property free of tax||50,000|
|Other UK assets||330,000|
|Less: Nil rate band||(325,000)|
|IHT payable @ 40%||190,000|
This gives an estate rate of 23.75% (ie 190,000 / 800,000).
The IHT on the UK land, the foreign
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