This guidance note looks at the application of the nil rate band and transferable nil rate band to death estates and highlights some features of how the calculations apply in practice. It should be read in conjunction with the related examples. For an outline of the rules and how to claim, see the Nil rate band guidance note.
The nil rate band excludes a substantial portion of the deceased estate from a charge to tax, and takes the majority of estates out of the inheritance tax bracket entirely. Technically, the portion is still charged to tax, but at 0%. The threshold is currently £325,000, which means that its value to the taxpayer is £130,000.
However, the free estate at death may not benefit from the whole nil rate band. Because of the way the cumulation principle works, part of it may be allocated to transfers in the preceding seven years. In addition, other
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FRS 102 ― tax presentation and disclosuresPresentation of tax under FRS 102An entity must present changes in a current tax liability (or asset) and changes in a deferred tax liability (or asset) as a tax expense (or income) unless the item creating the current or deferred tax amount is recognised in
Supplies of goods and services connected with educationThis guidance note provides an overview of the VAT treatment of goods and services provided in connection with supplies of education. This should be read in conjunction with the following guidance notes:•Supplies of education•Local authority
Interest on late paid taxIntroductionInterest on late paid tax is a compulsory charge set out in legislation to reflect the interest which would have accrued to the Exchequer had the correct amount of tax been paid at the right time.Harmonised legislation was introduced in 2009 to:•set statutory