IHTM14692 - Double charges relief: applying the relief

When a double charge arises,

• retain the charge on the transfer which produces the higher overall amount of inheritance tax
• reduce the other transfer to nil.

There is an exception in certain discretionary trust cases ( IHTM14732).

Where you

• retain the later transfer within the inheritance tax charge, and
• tax has been paid on the earlier transfer,

you may allow credit for some or all of that tax.

The calculations you will need to prepare may be more complex than the examples in the following pages. If you experience any difficulty, refer to your manager for advice.