IHT

Hi, I can now see that it is cumulative and first paid goes in first to enjoy nil rate band. Just to clarify, it does not matter whether it is PET or CLT etc, always the first paid will first benefit from nil rate band first? Thanks

it depends on whether you are computing IHT on lifetime transfers chargeable when made (CLT's) or computing the IHT payable on lifetime transfers chargeable on death where both PET's and CLT's made within the 7 years before death are chargeable. In each case the nil rate band is applied on a strict chronological basis so on death when PET's become chargeable if a PET pre-dates a CLT then it will indeed get first use of the available nil rate band - work through the examples in the notes.