IHT Worked Example
IHT Liability on Wilbur’s Estate under current rules
| Property Value | £1,000,000 |
|---|---|
| Cash | £100,000 |
| General Account Investment | £375,000 |
| ISA Accounts | £450,000 |
| TOTAL | £1,925,000 |
| Personal Allowance | -£325,000 |
| Property Nil Rate Band | -£175,000 |
| NET TOTAL | £1,425,000 |
| 40% Tax Liability | £570,000 |
| Pension | £800,000 |
IHT Liability on Wilbur’s Estate after 06 April 2027
| Property Value | £1,000,000 |
|---|---|
| Cash | £100,000 |
| General Account Investment | £375,000 |
| ISA Accounts | £450,000 |
| Pension | £800,000 |
| Total | £2,725,000 |
| Personal Allowance | -£325,000 |
| NET TOTAL | £2,400,000 |
| 40% Tax Liability | £960,000 |