IHTM04051 - Lifetime transfers: the charging provisions
»Ê¹ÚÌåÓýapp basic provision governing the tax charge on lifetime transfers is IHTA84/S3 (1). »Ê¹ÚÌåÓýapp charge may be divided into three parts. »Ê¹ÚÌåÓýapp subsection provides that a transfer of value is
- a disposition, (IHTM04023)
- made by a person, (IHTM04052)
- as a result of which the value of his estate immediately after the disposition is less than it would be by the disposition, (IHTM04054)
»Ê¹ÚÌåÓýapp value of the transferor’s estate before the transfer excludes any excluded property, (IHTM04251) IHTA84/S3 (2).
Most lifetime transfers are potentially exempt transfers (PETs), (IHTM04057) that is they are only chargeable if the transferor dies within seven years of making the transfer, IHTA84/S3A (1) and (4). But a lifetime transfer may be chargeable as