Question 5. (10 marks)

Hetty died in June 2020 leaving 20,000 to her son George and the 100,000 remainder of her estate to her husband Harold.

Harold had gifted 18,000 to George in May 2018.

Harold dies on 6 June 2021 leaving his entire estate to George. The estate comprised the Harolds home, a small flat valued at 170,000, and other assets worth 680,000, giving a total estate value of 850,000.

The IHT NRB for 2020-21 was 325,000.

No other lifetime gifts were made.

Required:

Calculate the IHT liability on Haroldsdeath, showing your workings, and state the payment date for IHT.

Total: 10 marks