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When we are calculating clts after I deduct my annual exemptions if my chargeable amount is higher or lower than my nil rate band will I subtract it from the nil rate band or and carry forward to the next clt ?
Or will I just carry it forward to the next clt?
Once you have established the chargeable transfer you calculate how much nil rate band is available to set against this CLT. You do this by comparing at that date the nil rate band with the gross total of CLT’s made within the previous 7 years – if the current CLT is 200,000 and the total of CLT’s in the previous 7 years is 225,000 and the nil rate band in this tax year is 325,000 what will be the IHT payable on the CLT if the donor is to pay the tax? -have you worked through OT notes and lectures?