I have an estate where the deceased died within 5 years of his brothers death and therefore can apply QSR to his inherited sum. The residue of my clients estate leaves 65% to charity and 35% to individuals, none of whom benefit from any relief.
I am trying to gross up the residue to calculate the tax payable and how to apportion this as to the different beneficiaries who benefit from the non exempt 35% and see how this interacts with the QSR.
I am tying myself into all sorts of knots and becoming very confused as to what goes where and on what from and thinking about setting out my calculations on a sheet of paper and submitting with my IHT 400.
Even then I am trying to work out how to gross up, calculate the tax at 36% on the non exempt part and then allocate the QSR and then apportion the IHT to the tax paying beneficiaries. Not even sure which order to apply the reliefs and the calculations.
Can anyone help please? I’ve looked at the gov.uk website and have ended up even more confused than before!
A worked example would be great showing me each step of the process with easy figures if that is possible?
e.g. taxable estate of £1,500,000, full NRB, (no RNRB) estate split 65% charity and 35% non charity beneficiaries (say 20%, 5% 10%) and QSR of say £150,000
Thank you in anticipation of your help.
Elisabeth Whybrow
Silks Solicitors Ltd