Elton, aged 81, is considering his Inheritance Tax position. He estimates that if he were to die in the near future his assets would consist of the following: House (the family home) 315,000 Interest in a business * 240,000 Cash in bank and building society accounts 80,000 National Savings & Investments - Premium Bonds 45,000 Equity based investments 195,000 Personal effects 15,000 890,000 *This is Eltons own business and his interest in it satisfies all the conditions for Business Property Relief. Eltons civil partner Robert died on 31 March 2017. Roberts estate was valued at 200,000 and in his will he left it all to his brother Jack. Robert had not made any chargeable lifetime transfers. On 20 December 2013 Elton gave total cash (equally divided between the two of them) of 220,000 (net of all relevant exemptions) to his and Roberts two legally adopted children. Elton has not made any other gifts which exceed the annual exemptions. In his will Elton leaves 30,000 to a local museum (which is a registered charity) and everything else equally to the two children. An estimate of funeral expenses, professional fees and general creditors when Elton dies is 8,000. a) Calculate the Inheritance Tax payable if Elton dies on (i) 30 November 2020 and (ii) 31 December 2020. Note that the amount of the Residential Nil Rate Band for 2020-21 will be 175,000. 15 marks b) Suggest ways in which Elton might reduce any IHT liability, both now and in the future.