Taper relief and set-off

Produced by Tolley
Taper relief and set-off

The following Trusts and Inheritance Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Taper relief and set-off
  • Taper relief
  • Relief for tax paid in lifetime (set-off)

Where a person has made chargeable transfers in the seven years before he died, an additional charge to inheritance tax will arise on the death estate. Potentially exempt transfers (PETs) made during that period will be brought within the inheritance tax charge for the first time. The tax on chargeable lifetime transfers, typically gifts into trust, will be recalculated at death rates. See the Charge on death guidance note. The additional charge may be reduced by:

  1. taper relief - which applies a percentage reduction to tax payable on transfers made within three and seven years before death

  2. set-off -

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