IHTM31234 - Chargeable lifetime transfers: immediately chargeable transfers

If you have a lifetime file, with a lifetime reference, you can create a life case ( IHTM31235) on COMPASS under the lifetime reference.

COMPASS will not allow you to create a life case under the death file reference – only one record under each reference is permitted.

If there is no life case reference, you will have to prepare a manual assessment ( IHTM31301) for the immediately chargeable transfer ( IHTM04067).

COMPASS

Set-up a new Entry for the transfer. If the type is

• a gift to a discretionary trust, or
• a gift to a company

classify them with the relevant statistics type.

If the type is

• a GWR ( IHTM14301) where the reservation ceases during lifetime and the transfer is not a PET ( IHTM04057), or
• another type of transfer chargeable when made

classify it under “Other Gifts Chargeable When Made”.

Where you increase the value of the chargeable transfer for grossing ( IHTM14593), include the addition as “cash”.

Include the PLCT ( IHTM31182) in the “Calculation of Inheritance Tax” window.

COMPASS will calculate the tax at 20%, being half the death rate ( IHTM14534).