ExpertACCA · Question 24 · Inheritance Tax
Section B: Case 2 - Eleanor Vance
Scenario: Eleanor Vance, a wealthy agricultural landowner, made several lifetime transfers before her death on 12 November 2023. On 15 August 2021, she transferred £450,000 of cash into a discretionary trust. Eleanor paid the lifetime Inheritance Tax (IHT) arising on this transfer. She had made no previous lifetime gifts.
Question: Eleanor's estate at death was valued at £1.8 million. She left her entire estate to her children. In 2020, she had sold a large main residence (valued at £600,000) and moved into the smaller farmhouse (valued at £250,000).
Assuming all conditions are met, what is the maximum Residence Nil Rate Band (RNRB) available to her estate for 2023/24?
Section B: Case 2 - Eleanor Vance
Scenario: Eleanor Vance, a wealthy agricultural landowner, made several lifetime transfers before her death on 12 November 2023. On 15 August 2021, she transferred £450,000 of cash into a discretionary trust. Eleanor paid the lifetime Inheritance Tax (IHT) arising on this transfer. She had made no previous lifetime gifts.
Question: Eleanor's estate at death was valued at £1.8 million. She left her entire estate to her children. In 2020, she had sold a large main residence (valued at £600,000) and moved into the smaller farmhouse (valued at £250,000).
Assuming all conditions are met, what is the maximum Residence Nil Rate Band (RNRB) available to her estate for 2023/24?
Answer options:
£250,000
£175,000
£350,000
£0
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