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| The threshold for Inheritance Tax is £300,000 and the rate is 40%
Mr Jones died on 10 March 2007 leaving £1,000 to a UK registered charity and the rest of his estate to his daughter..
| Asset
| Value
| | House
| £280,000
| | Car
| £7,500
| | Household Goods
| £2,000
| | Bank Account
| £19,250
| | Shares
| £30,075
| | Premium Bonds
| £500
| Total Net Assets
| £337,240
|
| Allowable Deductions
| Amount
| | Telephone Bill
| £55
| | Electricity Bill
| £45
| | Gas Bill
| £35
| | Funeral Expenses
| £950
| | Charity Donation
| £1,000
| Total Deductions
| £2,085
|
| Net Value of Estate
| £337,240
| | Less threshold
| £300,000
| | Total Taxable Amount
| £37,240
| £37,240 x 40%
| £14,896
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Mr A N Other's daughter is obilged to pay £14,896 Inheritance Tax!
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