CLT and illustration
You'll learn how to calculate inheritance tax on chargeable lifetime transfers (CLTs) and determine the gross chargeable transfer figure—a crucial skill for ATX and SBR papers.
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In this lesson
- 0:00 Chargeable lifetime transfers overview
- 1:04 Nil rate band calculation explained
- 2:14 Worked example: Kate's discretionary trust gift
- 3:19 Distinguishing PETs from chargeable transfers
- 4:10 Calculating gross chargeable transfer
About this lesson
This lesson walks you through the three-step process: calculating the transfer value and applying exemptions, identifying the available nil rate band (reduced by any previous gross chargeable transfers in the last seven years), and establishing whether the donor or donee pays the tax. Using a detailed worked example with Kate's discretionary trust gift, you'll see how to apply the 20% or 20/80 tax rates correctly and arrive at the final gross chargeable transfer figure that affects future lifetime gifts. Master this methodology and you'll handle CLT calculations with confidence in both exam and practice scenarios.
Duration: 5m
Transcript
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