The following scenario relates to questions $16-20.$

Jeffrey died on $11$ January $2023.$ At death his estate comprised chattels, quoted shares and cash valued at $1,580,000.$ Jeffrey had a life insurance policy which was valued at $250,000$ on his death. The insurance proceeds paid to the executors of his estate were $375,000.$ At death Jeffrey owed unpaid income tax and capital gains taxes amounting to $24,000$ and his funeral expenses were $7,000.$

On $8$ September $2017$ Jeffrey had made a lifetime gift of $500,000$ into a trust. The tax arising was paid by Jeffrey. This was his only lifetime transfer.

Jeffrey's wife, Stella, had died in June $2008.20\%$ of her nil rate band was unused and therefore available to be claimed by Jeffrey's personal representatives after his death.

Nil rate bands:

$2008-09,312,000$

$2009-10$ onwards $325,000$

$18.$Jeffrey's gift into trust will be recalculated as a result of his death using the higher death rate but with the liability reduced by the application of taper relief.

Which TWO of the following statements about this calculation are correct?

The unused nil rate band claimed in respect of his spouse will be applied to the transfer

The unused nil rate band claimed in respect of his spouse will not be applied to the transfer

Any inheritance tax paid at the time of the original transfer in excess of the liability on death will give rise to a repayment

Any inheritance tax paid at the time of the original transfer in excess of the liability on death will not give rise to a repayment