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Dear Jill, I jope you are well. i was confused about the 7 year previous period for purpose of Nil rate band as we deduct the GCT from it. Do we count the previous 7 years from death or 7 years from the Date when we doing the CLT ?
its clear from illustration , Its counted 7 years from The Pet/clt we are doing.
Thank you very much.
But the second stage is so confusing for the example 4, In notes its written: if donor dies within 7 years of making the gift , the CLT remains chargeable on death of the donor . IGT is then payable at 40% on the value of the gift ( less any NRB and lifetime tax paid )
but in lecture you wrote : Gross chargeable transfer – ( NRB – used in pet ) = taxable gain , then taxed it at 40 percent.
ill upload the screenshot of the lecture picture to show what i mean.Image uploaded : https://ibb.co/f46BVM5
what i thought would be calculated like was : chargable amount – ( NRL – used in pet ) – Lifetime tax paid = Taxable gain
Excuse me for sending half screenshot, The lifetime tax was reduced after Tap relief but still the original first figure used was gross Chargable transfer instead of just original chargeable amount
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