The following Trusts and Inheritance Tax guidance note by Tolley in association with Julie Butler provides comprehensive and up to date tax information covering:
Where farmland has been transferred as a lifetime gift there can be clawback of the APR where the donor dies within seven years of the gift. When calculating the inheritance tax charge on death, all lifetime gifts within the last seven years must be brought into account.
When an individual has made transfers within seven years of his death:
If the amount of the transfer was reduced by APR, the additional charge to tax is levied on the reduced amount.
The amount of the transfer is reduced by APR before the charge is levied, but only if the transfer qualified for APR at the time of the PET.
See the APR guidance note.
However, in both cases, the charge to inheritance tax will be levied on the transfers without the benefit of APR if certain conditions are not met.
APR will reduce the value of a transfer made within seven years of death as long as:
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