Commentary

I7.514D Credit for IHT

IHT, trusts and estates

I7.514D Credit for IHT

I7.514D Credit for IHT

A chargeable event will often be a chargeable transfer also. If there is a transfer involving property subject to conditional exemption, other than a potentially exempt transfer that has become chargeable (see I3.311, I3.511), the IHT payable on the transfer is allowed as a credit against the IHT payable in respect of the chargeable event. If a chargeable transfer is not a chargeable event, the credit will remain available for setting off against the liability on the next chargeable event. Credits can be set off against CTT or IHT chargeable on a chargeable event regardless of whether the conditional exemption arose under the estate duty relief, the pre 7 April 1976 relief, or the subsequent relief1.

Example 1

M died in May 2009 owning a painting valued at £140,000. His other

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