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
