Chargeable Lifetime Transfers (CLTs)

In the inheritance tax lectures, specifically, the third installment in the chapter, ayou talk us through examples of Chargeable Lifetime Transfers (CLTs).

In the case of CLTS, where the donor pays the IHT on any transfers (in excess of the nil rate band), we subtracted the prevailing nil rate band (£325,000) from the transfer into the trust and then applied the 25% tax charge on the net transfer. We then added this 25% tax (on the net transfer) charge to the net transfer of £400,000 to derive the gross transfer as £418, 750.

My question is, what if the the numbers were different? Say, in the first year, exactly £325,000 was transferred and so there’s no IHT charge at the prevailing nil rate band of £325,000, but then four years later (so within the seven year cumulative based donor cycle) a further £100,000 is contributed, but the nil rate band is now £350,000, for example, would £25,000 (the increase in the nil rate band within the seven year period) of this additional £100,000 enjoy the application of the nil rate band?

Would, therefore, the £75,000 in excess of the nil rate band, be subjected to the 25% IHT charge only (so £75,000 x 0.25 = £18,750), and would this this tax charge be added back to the £100,000, to get a gross transfer of £118,750?

Thank you again.