IHTM14001 - Lifetime transfers: Introduction

IHT is primarily a tax charged on a person's death estate ( IHTM04043). If the tax did not also apply in some way to lifetime gifts ( IHTM04051), it could easily be defeated by gifts of a person's entire estate made in expectation of death. So to protect the death charge, IHT can also be charged, broadly speaking, on gifts

• made within seven years of a person's death, or
• where some benefit of the gifted property has been retained.

In addition, gifts into most types of discretionary trusts, and those involving companies, are chargeable whenever made.

The main categories of lifetime transfers that you will deal with are

• Potentially exempt transfers ( IHTM04057)
• Deemed transfers ( IHTM04025)
• Gifts with reservation ( IHTM04071)
• Transfers chargeable when made ( IHTM04067).