978. Meaning of 'potentially exempt transfer'.

A potentially exempt transfer ('PET') is a transfer of value1:

  1.  

    (1)     which is made by an individual2 on or after 18 March 1986 but before 22 March 20063;

  2.  

    (2)     which, apart from these provisions4, would be a chargeable transfer5 (or to the extent to which, apart from these provisions, it would be such a transfer)6; and

  3.  

    (3)     to the extent that it constitutes either a gift to another individual7 or a gift to an accumulation and maintenance trust8 or a disabled trust9.

A potentially exempt transfer is also a transfer of value: