The following example is one where the case was initially
sub-threshold and there are yield amendments
The deceased died on 4/8/07. The estate was sub-threshold on
delivery and referred to PC&S. The customer voluntarily
disclosed bank accounts of £35,000. The BAO agreed an increase
in the value of the gifts of £50,000.
As initially assessed:
| Entry A | PLC | |
| House | £200,000 | |
| Bank accounts | £40,000 | |
| Life Policy premiums | £15,000 | |
| Tax | £0 | £0 |
(Under the threshold by £45,000)
As finally assessed:
| Entry A | PLC | |
| House | £200,000 | |
| Bank accounts | £75,000 | |
| Life Policy premiums | £65,000 | |
| Tax | £16,000 | £0 |
The yield adjustments are
Increase/ Decrease
| Sub-threshold changes | + £35,000 |
| Changes to PLCT | +£50,000 |
ERS uses the sub-threshold changes to amend the baseline and
reduce the unused IHT threshold by the amount of the non-yield
adjustment (
IHTM29108).
Yield is calculated as 40% x (£50,000 - £10,000
threshold remaining [£300,000 - £255,000 - £35,000])
=£16,000
