IHTM31233 - Chargeable lifetime transfers: additional charges

Where Additional Charges ( IHTM14571) arise, you can create an additional Entry and treat the calculation exactly as you would for a failed PET ( IHTM31232).

Remember however that the cumulation ( IHTM14573) figure may have changed since the lifetime assessment (at the time the transfer was made) to bring failed PETs into account.

Tax paid in lifetime

You will need to deduct any lifetime tax previously paid from the calculation. Insert this in the “less reliefs against tax” box ( IHTM31189). On IOP ( IHTM31012) assessments use the box in the appropriate column.

Where you need to deduct lifetime tax and taper relief ( IHTM14611) on the same assessment,

• add them together and insert the total in the “less reliefs against tax” box and
• ensure that a note or schedule explains clearly what the deduction relates to and how it is calculated.

If the assessment results in a repayment because the lifetime tax previously paid is greater than the death tax, do not issue the assessment. Instead, reduce the tax previously paid to equal the tax and interest charge now due to produce a nil assessment.