Under IHTA84/S3A (2)(a) and S3A(2)(b), Potentially Exempt
Transfer treatment is available to the extent that the value of the
transferee's estate is increased. Value in this context means open
market value (
IHTM20083) and is a matter for TG
Actuarial Team.
If the amount of the premium paid direct to the insurance
company exceeds the increase in the value of the policy, the excess
will be an immediately chargeable transfer (
IHTM04067) (subject to any other
available exemptions).
