IHTM10503 - When should you ask for an IHT 100 to be completed: potentially exempt transfers (PETs)
In the cases of a PET, there is no need to ask for an account if the deceased (transferor) dies more than 7 years after making the transfer as the transfer is an exempt transfer.
In strictness, the transferee is accountable (IHTM10821) and should complete an IHT100 for all potentially exempt transfers made by the deceased within 7 years of death. But for deaths on or after 9 March 1999 the deceased’s personal representatives (IHTM05012) must also include any gifts made by the deceased within 7 years of the death with the IHT400. In practice you should only ask for an IHT100 to be completed by a transferee if
- the information provided on supplementary page D3 is incomplete and the personal representatives are unable to give you the additional information you require
- you are concerned about the accuracy of the information provided by the personal representatives
- when form IHT400 was delivered late and the IHT100 remains outstanding, or
- the chargeable transfer exceeds the threshold for inheritance tax and is chargeable to tax in its own right.
The guidance (IHTM14021) on how to investigate form IHT403 explains this in more detail.
You should not normally ask for an IHT100 if the transfer is wholly exempt.