IHTM14024 - Investigating form IHT403: potentially exempt transfers

A potentially exempt transfer ( IHTM04057) is a transfer of value made on or after 18 March 1986, otherwise chargeable, from one individual

• to another individual ( IHTM04053), or
• to a maintenance and accumulation trust, or
• to a trust for the disabled within IHTA84/S89.

Consider the tax treatment of a PET ( IHTM14511) and a PET followed by a death ( IHTM14512).

If the deceased had made any failed PETs, not covered by small gift ( IHTM14180) or annual exemptions ( IHTM14141) you would expect to see these listed in box 7 of the form IHT403.

• You must check that the values returned are correct and any exemptions correctly claimed.
• Refer property such as land and buildings to the District Valuer ( IHTM23002) and unquoted shares to Shares Valuation ( IHTM18141) for verification of the date of gift value.