Commentary

I11.211 Lifetime transfers

IHT, trusts and estates

I11.211 Lifetime transfers

Accounts—Individuals

I11.211 Lifetime transfers

The general rule

The general rule is that all transferors who are liable for IHT on the value transferred by a chargeable transfer, or who would be so liable if IHT were chargeable on that value, must deliver an account specifying to the best of their knowledge and belief the property to which the IHT is or would be attributable and its value1. The requirement to deliver an account if there 'would be' liability covers chargeable transfers within the nil rate band; accounts are not required for transfers exempted by IHTA 1984, Pt II (ss 18–42), because they are not chargeable transfers (Division I3.3). Similarly, no account of a potentially exempt transfer is required during the transferor's life because until he dies it is assumed to be exempt2.

Exceptions to the general rule

For transfers on or after 6 April 2007, no account is required to be delivered in respect of transfers where the underlying assets are cash or quoted securities and the chargeable transfer when aggregated with chargeable transfers made by that person in the previous seven years do not exceed the IHT threshold (the nil rate band)3. Where assets transferred are of some other kind, there is no need to file an account if the value transferred when aggregated with chargeable transfers made by the transferor in the last seven years do not exceed 80% of the IHT threshold at the date that the transfer is made and the transfer itself does

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