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Dear tutor,
Can you please explain in what circumstances we use them.
I understand when a gift is given, however it seems as though sometimes it is applied in examples and at other times it is not.
In Technical articles IHT 2:
Example 1, it is not considered
Example 2, it is used to reduce gift?
Although both were CLT, is this because we already applied the £325 exemption to PET in example 1 and annual exemptions are not applied to PET?
You are confusing the AE and the nil rate band – the £325,000 is NOT an exemption it is a tax rate to be applied to a CHARGEABLE TRANSFER. The AE is an exemption which is deducted from the TRANSFER OF VALUE to compute the CHARGEABLE TRANSFER.
Have you worked through the OT course notes and lectures working the examples and illustrations therein?
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