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I noticed that the IHT paid previously during lifetime on the CLT (£2,000) was not later deducted from the IHT payable after the taper relief was deducted.
Less: the £2,000 IHT paid on the CLT (that grossed up the transfer.)
In example-1 it was deducted after the taper relief.
I was wondering how come?
Thanks
There is NO IHT payable on the CLT at the date of death as it is more than 7 years before the date of death so there is neither taper relief nor IHT paid in lifetime to deal with – the only lifetime transfer that is taxed on death is the PET where of course there is no IHT payable in lifetime.
Review more carefully the answer provided to make sure that you are correctly dealing with all the issues.
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