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Hi,
1 September 2017 PET didn’t get to use NRB because it was used up in the last seven years . However while computing chargeable estate , when we look at the past 7 years from Dees death , why do we reduce the NRB by the IHT of the PET , we didnt get to reduce it from the PET , i didnt understand this portion. why did we reduce it ? i understand it fits the timeline but why reduce it when we didnt actually use it ?Thanks !
Firstly – have you watched the recording of this chapter as it clearly explains the answer?
Hi, I watched the recording of the whole chapter twice and still don’t get it. Do you mind shred some light here? Thanks.
“The NRB must be reduced by the gross chargeable transfers (GCTs) made in the previous seven
years. During the donor’s lifetime GCTs only include CLTs, not PETs.”Found it! Sorry for bothering.
Glad you found it. It’s always better to discover the answer for yourself to be honest – that way you remember it better.
Well doneThank you, may I ask a follow up question? What’s the logic behind this rule? I found it a bit unfair to someone who didn’t use the NRB (like the one in the example). Google said it’s a fairness concern. Any input is appreciated!
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