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Example 2

Assume that, in example 1, Mrs Smith dies exactly 9 years and 1 month after her husband and that, on her death, the rates are those in paragraph 24.B5. The tax on the death of Mr Smith was $30,000, assessed on an estate of $190,000. The equivalent of an estate of $190,000, under the scale in paragraph 24.B5, is one of $205,333, and the


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equivalent tax on such an estate is $38,720. Mrs Smith's estate (net value $230,000) can be assumed to include an amount equivalent to the value of the inherited assets ($205,333), so that the whole of the $38,720 less four-tenths of it (9 complete years having elapsed since the death of Mr Smith) will be available as a credit:

       
Duty on $230,000  47,960 
less Relief (6/10 × $38,720)  23,232 
Duty payable on Mrs Smith's estate  24,728 

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