Ruben died unexpectedly at the age of 72, on 6 August 2021 leaving the following estate: £ House (Ruben’s residence) 425,000 Motor car 15,000 Bank deposits 125,000 ISA 75,000 Residential investment properties 550,000 Ruben’s funeral cost £6,000. Under Ruben’s will, his entire estate passes to his daughter Sarah. In June 2018, Ruben had made a gift of £400,000 into a trust for Sarah. Ruben agreed to pay any IHT arising on this transfer. Ruben also made a gift of £15,000 to his sister in May 2019 when she retired. Ruben made no other lifetime gifts and was never married.

a) Calculate the IHT payable, if any, arising on the gift into the trust in June 2018, in Ruben’s lifetime and state the gross chargeable transfer. (4 marks)

b) Calculate the additional IHT payable, if any, on the lifetime gifts made in 2018 and 2019, as a result of Ruben’s death. (6 marks)

c) Calculate the IHT payable on Ruben’s estate on his death. (5 marks)

d) Explain, with supporting calculations, how the IHT liability on Ruben’s death would have changed if he had invested all of the Bank deposit funds into unquoted shares qualifying for Business Property relief in January 2019. (5 marks) Total: 20 marks