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Dear Sir
For calculating NRB at death for a lifetime gift (For example lets say “Gift 1”)we have to deduct all the Gross Chargeable Amounts of past 7 years from the NRB right? So what if one of the Gifts ( preferably a CLT) which comes under the range of seven years from “Gift 1” is an exempt gift when compared with the date of death? Do we have to ignore the Gross Chargeable amount of that particular CLT or do we have to take it?
Thankyou
Sharyfonly lifetime transfers made in the 7 years before death are chargeable on death but in computing the available NRB to apply to them we must account for CLT’s made in the 7 years prior to them.. Thus a CLT made 10 years before death is not taxable but it will be deemed to have used the NRB that is then available for transfers in the next 7 years ie up to 3 years before death! See OT course notes – this issue however has not yet been tested at F6
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