ExpertEasy2 marksMultiple Choice
ACCA · Question 25 · 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: By what date must the IHT on Eleanor's death estate be paid to HMRC to avoid interest charges?
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?
Answer options:
A.
12 May 2024
B.
31 May 2024
C.
30 April 2024
D.
31 January 2025
How to approach this question
Apply the rule for IHT payment on death: The end of the sixth month following the month in which the death occurred.
Full Answer
B.31 May 2024✓ Correct
Inheritance Tax on a death estate must be paid by the end of the sixth month following the month of death. Eleanor died on 12 November 2023. The month of death is November. Six months following November is May. Therefore, the due date is 31 May 2024.
Common mistakes
Calculating exactly 6 months from the date of death (e.g., 12 May).
Practice the full ACCA TX — Taxation Practice Exam 1
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