Commentary

I7.514C Effect of increasing rates of IHT

IHT, trusts and estates

I7.514C Effect of increasing rates of IHT

I7.514C Effect of increasing rates of IHT

As the rate of tax on successive chargeable events attributable to the same relevant person increases progressively, the first transferee to trigger off a chargeable event pays tax at a lower rate than the other transferees might have to bear. This could produce the result that a prodigal son, who sells the property soon after he receives it, could pay tax at a much lower rate than his sister who honours her undertaking until her death. The owner of conditionally exempt property who does not himself propose to make a conditionally exempt transfer,

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