| IHT and PET Question [message #377820] |
Do, 06 April 2006 12:46 |
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Can anyone please advise on PET treatment.
For IHT purposes is the PET value taken at the time the gift is made or upon
the death of the giver? e.g.. Some property is transferred now with a value
of £100,000 and the giver dies after 5 years. Upon death the property value
has risen to £140,000. Leaving aside possible declining tax rate from the 3
years after the time the gift was in force is IHT charged on the £100,000 or
the £140,000?
Thanks in advance.
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| Re: IHT and PET Question [message #377828 ] |
Do, 06 April 2006 14:42 |
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bobs wrote:
> Can anyone please advise on PET treatment.
>
> For IHT purposes is the PET value taken at the time the gift is made or u=
pon
> the death of the giver? e.g.. Some property is transferred now with a val=
ue
> of =A3100,000 and the giver dies after 5 years. Upon death the property v=
alue
> has risen to =A3140,000. Leaving aside possible declining tax rate from t=
he 3
> years after the time the gift was in force is IHT charged on the =A3100,0=
00 or
> the =A3140,000?
>
> Thanks in advance.
A PET is always the value of the gift at the time of transfer. In your
example, it would be the =A3100,000.
To be precise, it is the loss of value to the donors estate at the time
of transfer.
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| Re: IHT and PET Question [message #379940 ] |
Di, 11 April 2006 11:57 |
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"For IHT purposes is the PET value taken at the time the gift is made
or upon the death of the giver? e.g.. Some property is transferred now
with a value of =A3100,000 and the giver dies after 5 years. Upon death
the property value has risen to =A3140,000. Leaving aside possible
declining tax rate from the 3 years after the time the gift was in
force is IHT charged on the =A3100,000 or the =A3140,000? "
As Simon said, it's the value at the time of the gift that matters for
IHT. But remeber this: if the giver continues to live in the poroperty
then it does not count as a gift for IHT but remains in the estate as a
'gift with reservation'. It will then be taxed as 140k. Worse than
that, the recipient will be liable for capital gains tax on the 40k
growth because the gift DOES count as a givft for CGT purposes.
=20
Robert
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| Re: IHT and PET Question [message #379984 ] |
Mi, 12 April 2006 07:47 |
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Robert wrote:
> "For IHT purposes is the PET value taken at the time the gift is made
> or upon the death of the giver? e.g.. Some property is transferred now
> with a value of =A3100,000 and the giver dies after 5 years. Upon death
> the property value has risen to =A3140,000. Leaving aside possible
> declining tax rate from the 3 years after the time the gift was in
> force is IHT charged on the =A3100,000 or the =A3140,000? "
>
> As Simon said, it's the value at the time of the gift that matters for
> IHT. But remeber this: if the giver continues to live in the poroperty
> then it does not count as a gift for IHT but remains in the estate as a
> 'gift with reservation'. It will then be taxed as 140k. Worse than
> that, the recipient will be liable for capital gains tax on the 40k
> growth because the gift DOES count as a givft for CGT purposes.
>
>
> Robert
Also there is almost certainly no "declining tax rate from the 3 years
after the time the gift was in force" for this gift.
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