The following Trusts and Inheritance Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
The occasions on which a liability to inheritance tax can arise are:
All of these occasions reflect the purpose of IHT as a tax on the transfer of wealth.
The lifetime charge applies when a person makes a ‘transfer of value’ or ‘disposition’, as a result of which the value of his estate is less after the disposition than it was beforehand. The definition covers actual gifts of property, as well as notional dispositions. See the Chargeable transfers guidance note.
A transfer of value during a person’s lifetime may not be chargeable because it:
As a result of the above exclusions, a lifetime gift into a relevant property trust is the only type of disposition to suffer the lifetime charge to inheritance tax. Such gifts are referred to as chargeable lifetime transfers (CLT). Where tax is payable on lifetime
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