[karabeha]

All transfers made to :
1- Spouse/Civil Partner
2-Charity
3-Qualify political Party
ARE EXCEMPT.

All transfers made to physical persons other than Spouse/Civil they are characterized as Potentially Exempt Transfers. (PET)

Always all transfers made to TRUST’s are characterized as Chargeable Lifetime Transfers. (CLT)

A CLT could never be characterized as PET as it is a transfer made always to a trust. (for exam purposes)

oogabooga kindly note that if the PET exceeds the nil bad rate (which for FY 2012/13 is 325000£) then you pay IHT tax of 40% on the excess amount. (you’re not except at all). If the donor does not survive for more than 7 years then the tax paid on the excess transfer receives a relief according to Tape Relief .

[karabeha]

When a transfer is assessed as PET and when CLT ?

Could it be that a done makes a transfer as PET and not pay any IHT during his lifetime and after his death (which is less than 7 Yrs) to change its characterization to CLT and IHT needs to be paid ?

[karabeha]

Hi Coline,

It my pleasure to be able to return something back to you, as I am very much into your lecture notes, that you have so kindly offered. Its a good work and I am very mach enjoying the lectures and notes that go with it. Keep up the good work.

Kind regards,
Hagop

[Author]

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