The following Trusts and Inheritance Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
This guidance note explains how to calculate the amount of tax that arises under the lifetime charge. In general terms the lifetime charge will apply to individuals who transfer property into a trust that is subject to the relevant property regime. See the Chargeable transfers and Occasions of charge guidance notes. Outright gifts to individuals and transfers into a disabled person's trust will qualify as potentially exempt transfers (PET) and will not incur a lifetime charge. See the Potentially exempt transfers guidance note.
The calculation of tax that arises under the additional charge and the estate charge is considered separately in The charge on death guidance note, although the principles which apply in all these cases are broadly the same.
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