Question 1

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: By what date must the IHT on Eleanor's death estate be paid to HMRC to avoid interest charges?

Accepted Answer

Apply the rule for IHT payment on death: The end of the sixth month following the month in which the death occurred.

Question 2

What mistakes do candidates make on this ACCA question?

Accepted Answer

Calculating exactly 6 months from the date of death (e.g., 12 May).

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA TX — Taxation Practice Exam 1

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