Afiya died on 29 November 2012. She had made the following gifts during her lifetime:

(1) On 13 April 2011, Afiya made a cash gift of £32,000 to her husband.

(2) On 2 May 2011, Afiya made cash gifts to her three nieces. The first niece was given £100, the second niece was given £200, and the third niece was given £400.

(3) On 14 September 2011, Afiya made a gift of 6,500 £1 ordinary shares in Cassava Ltd, an unquoted investment company, to her daughter.

Before the transfer Afiya owned 8,000 shares out of Cassava Ltd’s issued share capital of 10,000 £1 ordinary shares. On 14 September 2011, Cassava Ltd’s shares were worth £3 each for a holding of 15%, £7 each for a holding of 65%, and £8 each for a holding of 80%.

(4) On 27 January 2012, Afiya made a cash gift of £400,000 to a trust. Afiya paid the inheritance tax arising from this gift.

On 29 November 2012, Afiya’s estate was valued at £620,000. Under the terms of her will Afiya left £150,000 to her husband, a specific legacy of £40,000 to her sister, and the residue of the estate to her children.

The nil rate band for the tax year 2011–12 is £325,000.

Required:
(c) Calculate the amount of the inheritance which will be received by Afiya’s children. (1 mark)