»Ê¹ÚÌåÓýapp

»Ê¹ÚÌåÓýapp main purpose of the partly exempt transfer rules is to provide a method of calculating the part of the deceased’s estate which is exempt. »Ê¹ÚÌåÓýapp balance is then chargeable.

»Ê¹ÚÌåÓýapp rules (IHTM26071) operate by allocating the value of the estate between specific and residuary gifts. »Ê¹ÚÌåÓýapp rules apply separately at each title (IHTM26211).

It is normally not necessary to go through the full process in the following situations

• »Ê¹ÚÌåÓýappre are no specific gifts (IHTM26040)
• »Ê¹ÚÌåÓýapp residue is wholly chargeable (IHTM26030)
• »Ê¹ÚÌåÓýapp residue is partly chargeable but there are no chargeable specific gifts (IHTM26050)
• »Ê¹ÚÌåÓýappre are chargeable specific gifts but the residue is wholly exempt (IHTM26060)

»Ê¹ÚÌåÓýapp rules for quantifying the chargeable estate are mainly contained in IHTA84/S38 and IHTA84/S39. To apply the rules you will need to

• calculate the value (IHTM26013) of each specific gift (IHTM26003) under the rules, and
• then calculate the residue (IHTM26003) by deducting the total value of the specific gifts from the value of the free estate (IHTM26003) for Inheritance Tax (IHT) purposes. »Ê¹ÚÌåÓýapp difference is the value of the residue.

To find the chargeable part of the estate

• add together the value of the exempt specific gifts and exempt shares of the residue
• then deduct this total from the value of the free estate for IHT purposes. »Ê¹ÚÌåÓýapp difference is the value on which tax is chargeable