ExpertACCA · Question 24 · Inheritance tax
Section B: Case 2 - Arthur Pendelton's Estate
Scenario: Arthur Pendelton died on 15 February 2024. He owned a working farm, 'Oakwood Farm', which he had actively farmed himself for the last 15 years. The farm consists of agricultural land, a farmhouse where Arthur lived, and two farm cottages occupied rent-free by his farm workers.
Question: Arthur left his main residence (valued at £400,000) to his direct descendants. His total estate before exemptions and reliefs was valued at £2,300,000. What is the amount of Residence Nil Rate Band (RNRB) available to Arthur's estate for the 2023/24 tax year? (Assume no transferable RNRB from his late wife).
Section B: Case 2 - Arthur Pendelton's Estate
Scenario: Arthur Pendelton died on 15 February 2024. He owned a working farm, 'Oakwood Farm', which he had actively farmed himself for the last 15 years. The farm consists of agricultural land, a farmhouse where Arthur lived, and two farm cottages occupied rent-free by his farm workers.
Question: Arthur left his main residence (valued at £400,000) to his direct descendants. His total estate before exemptions and reliefs was valued at £2,300,000. What is the amount of Residence Nil Rate Band (RNRB) available to Arthur's estate for the 2023/24 tax year? (Assume no transferable RNRB from his late wife).
Answer options:
£175,000
£25,000
£0
£150,000
How to approach this question
Full Answer
Common mistakes
Practice the full ACCA TX — Taxation Practice Exam 5
32 questions · hints · full answers · grading