Hope someone can help me out of a pickle.
Should exemptions for lifetime transfers be taken into account when calculating tax due on death re a PET?
Example:
Gift of £500,000 to donor's daughter on marriage in December 2009.
No other transfers of value in previous 7 years.
Donor dies in December 2010.
In order to calculate the chargeable amount of this PET, should you take into account
a) the marriage exemption of £5,000?
b) the annual exemption of £3,000 for 2009/10 and the same b/f from 2008/09?
I have seen worked examples where the marriage exemption is offset when calculating IHT due on death for a PET but the AE only seems to be offset against CLTs to calculate lifetime IHT.
Please explain!
Should exemptions for lifetime transfers be taken into account when calculating tax due on death re a PET?
Example:
Gift of £500,000 to donor's daughter on marriage in December 2009.
No other transfers of value in previous 7 years.
Donor dies in December 2010.
In order to calculate the chargeable amount of this PET, should you take into account
a) the marriage exemption of £5,000?
b) the annual exemption of £3,000 for 2009/10 and the same b/f from 2008/09?
I have seen worked examples where the marriage exemption is offset when calculating IHT due on death for a PET but the AE only seems to be offset against CLTs to calculate lifetime IHT.
Please explain!