Revisiting lifetime transfers on death - PET
You'll learn how to calculate inheritance tax (IHT) when a potentially exempt transfer (PET) becomes chargeable on the donor's death within seven years.
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In this lesson
- 0:00 Lifetime transfers and PET death taxation
- 0:21 Calculating transfer value and nil rate band
- 0:49 Taper relief eligibility explained
- 1:01 Worked example: share gift IHT calculation
- 2:35 Donee liability and taper relief application
About this lesson
This video revisits the key steps: starting with the chargeable amount established during life, applying the nil rate band available at death, calculating tax at 40% on any excess, and determining whether taper relief reduces the liability (available only if the donor survived at least three years). You'll work through a practical example involving a share gift to understand how the donee's IHT liability is calculated and when taper relief applies.
Duration: 3m
Transcript
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