When calculating the IHT on death of donor, PET becomes chargeable , why dot we deduct the p.e.t which is £409,000 from the n.r.b. ? Instead we just take the n.r.b as £325,000?
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Bpp mock paper 2 question 3.
I do not have the BPP mock exam but if the PET is the first transfer to be taxed and there was no CLT within the 7 years prior to it then you would simply deduct the NRB from the PET and tax at 40 % and then reduce that tax charge by any taper relief if available
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