IHTM14511 - PETs: tax treatment of a PET

A PET ( IHTM04057)

• is not chargeable at the time it is made
• becomes chargeable if the transferor dies within seven years of the transfer (it is then a “failed PET”)
• is an exempt transfer if the transferor survives the transfer by seven years or more (it is then a “successful PET”).

Before a death has occurred, the transferor only needs to advise us of the transfer if it is relevant for the application of annual exemption ( IHTM14143) in relation to an immediately chargeable transfer.

It is not brought into cumulation for the immediately chargeable transfer (until considering additional charges ( IHTM14571) arising because of a death).