I3.323A Annual exemption and settled property examples
On 1 July 2019 L gave up his life interest in settled property then worth £200,000 to his daughter D, the capital beneficiary. This was a PET. On 1 November 2019 he gave notice to the trustees that his 2019/20 annual exemption of £3,000 was available and that £2,000 of his 2018/19 annual exemption was available. L died in March 2020.
The PET becomes chargeable, and the gross chargeable transfer is:
|Value of settled property||£200,000|
|Deduct: annual exemptions||2019/20||£3,000|
|Gross chargeable transfer||£195,000|
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