If a taxpayer dies within 7 years of making a CLT then it will indeed be charged at 40% if it exceeds any available nil rate band. Remember however that any such 40% tax charge will be firstly reduced by taper relief AND by any lifetime tax paid to establish any additional tax that may be due on death. The effect of this is that just like with a PET the maximum total tax charge that may be paid on a CLT is a total of 40%. The lectures on IHT are about to go online so hopefully they will now also assist you in your studies.