CAN AN IHT LIABILITY COME ABOUT?
In simple terms,
the trigger for an IHT charge is when an asset is transferred. This might be for three
It only applies
of the transfer is a gift, as opposed to a “loan” or if it is
purchased at full market value. (If a transfer is made at
below or above market value then the difference would be treated as
- It is transferred from one individual to another.
- It is transferred from an individual to a trust.
- It is transferred from a trust to an individual.
because such a transfer is a “trigger” for IHT, it does not
necessarily mean that the tax is due at that time. To explain, it is worth
considering the three types of transfer that there
Exempt Transfers (PETs)
Hopefully, these will provide at
least some insight into the various, often common sense, routes to
protect your assets from the taxman.