IHTM31232 - Chargeable lifetime transfers: failed PETs

Where a PET ( IHTM04057) becomes chargeable because of a death within seven years, and tax is payable on that transfer itself, the assessments are part of the death case on COMPASS.

• set-up each chargeable transfer as a separate Entry ( IHTM31011)

and

• Assess the transfers separately to the death estate

Enter any fall in value relief ( IHTM14621) at the data entry stage under the “Revaluation on death” relief type.

Remember that COMPASS does not automatically include PLCT, so you will have to include the correct figure yourself on the “Calculation of Inheritance Tax” window ( IHTM31182) when you raise the assessment.

COMPASS does however calculate any taper relief ( IHTM14611) automatically.