IHT 403 Chargeable transfers

vic_brewer

My first post to MSE, so I hope this is the correct forum - I’m working through IHT forms for my late dad’s estate. I’m on the schedule about gifts - IHT103. Our situation was that my dad & I lived together from 2005, in his house, and during our time together my dad put the house in our joint names, (back in 2006), and then 6 years before he died, gave me the second half of the house.
So – my question is: I knew gifts within 7 years of his death were important, but on IHT403 there is box 18: “did the deceased make any chargeable transfers during the 7 years BEFORE THE EARLIEST OF THE GIFTS shown at box 7”. What is a “chargeable transfer”?

bowlhead99

vic_brewer wrote: »

My first post to MSE, so I hope this is the correct forum - I’m working through IHT forms for my late dad’s estate. I’m on the schedule about gifts - IHT103. Our situation was that my dad & I lived together from 2005, in his house, and during our time together my dad put the house in our joint names, (back in 2006), and then 6 years before he died, gave me the second half of the house.
So – my question is: I knew gifts within 7 years of his death were important, but on IHT403 there is box 18: “did the deceased make any chargeable transfers during the 7 years BEFORE THE EARLIEST OF THE GIFTS shown at box 7”. What is a “chargeable transfer”?

A chargeable transfer are, broadly, gifts that are immediately chargeable for IHT - rather than exempt transfers (e.g. transfer to spouse) or potentially exempt transfer ('PET' e.g. giving your son or other individual some cash or other assets and hoping you survive 7 years).

Certain transfers into trusts (well, most transfers into trusts these days other than quite a limited range of trust types) can be chargeable rather than PET.

xylophone

https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm04067

https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm04071


https://www.moneywise.co.uk/work/tax/can-i-gift-half-my-house-my-child-cut-inheritance-tax

It may be as well to take professional advice.