Commentary

I3.561 Lifetime transfers and partial exemption

IHT, trusts and estates

I3.561 Lifetime transfers and partial exemption

Calculating the tax on lifetime transfers—miscellaneous

I3.561 Lifetime transfers and partial exemption

It is unusual, though not impossible, for a lifetime transfer of value to be partially exempt. It is perhaps most likely to happen where an interest in possession under a settlement made by Will comes to an end during the life of the person entitled to it.

Where a lifetime transfer is partially exempt there is yet another stage of computation, working out which part of the transfer of value is exempt and which part is chargeable, before the computation rules considered in this Division are applied.

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