Commentary

I3.311 Transfers by and to individuals as PETs

IHT, trusts and estates

I3.311 Transfers by and to individuals as PETs

Division I3.3     Exemptions and reliefs for lifetime transfers

Updated by
MALCOLM GUNN CTA

For updates affecting this Division please see Part I0 Updates

Potentially exempt transfers (PETs)

I3.311 Transfers by and to individuals as PETs

A transfer of value made by an individual after 21 March 2006 is a potentially exempt transfer (commonly referred to as a PET) if it is1 not an exempt transfer, and is a gift:

  1.  

    •     to another individual,

  2.  

    •     into a disabled trust, or

  3.  

    •     into a bereaved minor's trust on the coming to an end of an immediate post death interest

For further information on gifts into accumulation and maintenance (A&M) settlements, disabled trusts, and bereaved minor's trusts on the coming to an end of an immediate post death interest, see I3.312 and I3.313

Where a policy of life insurance is taken out or varied after 26 March 1974 and an annuity was purchased at that or some other time, and the benefit of the policy is vested in someone else, the taxpayer will be treated as having made a transfer of value at the time the benefit of the policy became vested.

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