Revisiting lifetime transfers on death - CLT

In this lesson

1. 0:00 Introduction to CLT death tax liability
2. 1:47 Seven year lookback period explained
3. 2:44 PETs disappear after seven years
4. 3:52 Calculating additional IHT on death
5. 4:56 Taper relief eligibility rules

About this lesson

You'll discover why the seven-year rule matters for both lifetime and death tax calculations, how to apply the nil rate band correctly when gifts fall within this period, and how lifetime IHT paid can reduce (but never eliminate) the death tax bill. This is essential knowledge for the Taxation module, where CLT death tax calculations are a core exam requirement. The video walks you through a practical scenario involving a discretionary trust gift, showing you how to plot gifts on a timeline and identify which ones trigger death tax. The key insight is understanding the two different seven-year lookback periods: one from the date of death (to find which gifts are chargeable) and one from the date of the gift (to calculate the correct nil rate band). You'll also learn why potentially exempt transfers (PETs) that fall outside the seven-year window are ignored completely, and when taper relief applies to reduce the death tax charge. By the end, you'll be confident handling multi-gift scenarios and avoiding common mistakes in your exam answers.

Duration: 5m