IHTM20402 - Differences between PETA and Discounted Gift schemes

PETA schemes can be distinguished from Discounted Gift schemes (which may also have Pure Endowment and Term Assurance policies) on the basis of the following:

PETA schemes

  • »Ê¹ÚÌåÓýappre was a right of surrender of the Pure Endowment policy.
  • No withdrawals could be made by the transferor from the Pure Endowment policy.
  • »Ê¹ÚÌåÓýappse were Capital transfer Tax (CTT) avoidance schemes

Discounted Gift schemes

  • »Ê¹ÚÌåÓýappre was no right of surrender of the Pure Endowment policy
  • Partial withdrawals by the transferor from the Pure Endowment policy were permitted each year
  • »Ê¹ÚÌåÓýappse are CTT/IHT mitigation schemes