Some students achieved excellent marks on this question; others scored very poorly.
For those of you who need to improve your grades in the resit exam, try to remember the following points:
- virtually all assets are chargeable to inheritance tax (IHT). This includes assets which are exempt from CGT such as: low value and wasting chattels, investments held within ISAS and the principal private residence
- check whether the estate in entitled to any transferable nil rate band or residential nil rate band
- lifetime gifts may use up all or part of the nil rate band, but check for any reliefs which may be available to reduce the effect
- when converting the value of assets from a foreign currency to GBP take care to get your decimal point in the right place
- where an incorrect return has been submitted consider all the information you have been given when determining what penalties, if any, are appropriate.
- if you are asked to estimate those penalties, explain your answer. Even if your answer differs from the ‘official’ one, you can still get most of the marks if you can show that you have been applying the appropriate methods to arrive at your figure.