I3.533 Other factors affecting chargeable lifetime transfers (CLTs)
Apart from cumulation and tax rates as considered in I3.531 and I3.532, there are other sets of rules affecting the additional IHT which may be payable on a chargeable lifetime transfer (CLT) as a result of the death of the transferor within seven years:
• Loss of BPR or APR as a result of clawback (see I7.191 and I7.381), because, for example, the business or agricultural property comprised in the transfer has been sold by the transferee before the transferor's death (see the Example below).
The effect of clawback can be substantial, particularly if the relief was originally at 100%. In the case of a CLT any clawback of business or agricultural relief relates to the computation of the additional IHT on the transfer arising from the transferor's death, but not to the value that is taken into the transferor's cumulation of chargeable transfers for the purposes of IHT charges on subsequent transfers (including the deemed transfer on death), which continues to be the value as reduced by the relevant relief1. Contrast this with PETs, where the aggregable value is affected by the clawback as well as the amount on which IHT is
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