Taper relief and set-off

Where a person has made chargeable transfers in the seven years before he died, an additional charge to inheritance tax will arise on the death estate. Potentially, exempt transfers made during that period will be brought within the inheritance tax charge for the first time. The tax on chargeable lifetime transfers, that is, gifts into trust, will be recalculated at death rates. See the Charge on death guidance note. The additional charge may be reduced by:

• •taper relief - which applies a percentage reduction to tax payable on transfers made w