- This topic has 4 replies, 3 voices, and was last updated 11 years ago by .
Viewing 5 posts - 1 through 5 (of 5 total)
Viewing 5 posts - 1 through 5 (of 5 total)
- You must be logged in to reply to this topic.
OpenTuition recommends the new interactive BPP books for June 2024 exams, Get your discount code >>
Forums › ACCA Forums › ACCA TX Taxation Forums › Inheritance tax – PETs and CLTs
Can someone clarify for me the difference on PETS and CLTS….
If a gift or transfer is made to a trust it is a PET, whilst all other gifts and transfers are CLTS?? I am using BPP and it does not provide any clarification on this particular point at all! Kaplan does but I havent got this years Kaplan text!
for the purpose of F6 exam,
PETs are transfers made by an individual to another individual.
CLT are transfers made by an individual to a trust.
and,
PETs only become chargeable if the donor dies within 7 years – they are not chargeable when made.
CLTs are chargeable when made – 20% (donee) or 25%(donor) – and chargeable if the donor dies within 7 years.
One should work through the two ACCA IHT articles by David Harrowven – some great examples.
Thanks Saaimh and wgkeating!
Keep the momentum going. 🙂