IHT Taper relief

Albermarle

AIUI from threads I have read on here, that taper relief only applies to gifts that exceed your nil rate band.
So for example if you give away £300k and die after 6 years and 11 months, the whole £300k is counted back into the estate, as taper relief does not apply.
However in the past month I have read four separate articles on IHT, published by Fidelity; HL; Paul Lewis of Moneybox fame and AJ Bell.
All clearly indicate that taper relief applies to all gifts, with no mention that it only applies on very large gifts, and only on the amounts above the nil rate band.
Are they all wrong? they are supposed to be experts

fuzzzzy

Yes I believe they are all wrong.

Keep_pedalling

There is a lot of ignorance out there. Yes they are all wrong. Give away £325k no taper relief, give away £326k and TR applies to £1k of that gift.

Albermarle

Keep_pedalling said:

There is a lot of ignorance out there. Yes they are all wrong. Give away £325k no taper relief, give away £326k and TR applies to £1k of that gift.

Thanks for confirming.

NorthYorkie

Taper relief is only of relevance if there is a tax liability against which the relief can be set. The Nil Rate Band is set initially against the first transfer of value made in the 7 years prior to death, then against any subsequent lifetime transfers ain order and then any remaining balance against the estate on death. So therefore if the lifetime transfers are below the Nil Rate Band, there is no taper relief because there is no tax on those transfers against which it can be set.

Albermarle

NorthYorkie said:

Taper relief is only of relevance if there is a tax liability against which the relief can be set. The Nil Rate Band is set initially against the first transfer of value made in the 7 years prior to death, then against any subsequent lifetime transfers ain order and then any remaining balance against the estate on death. So therefore if the lifetime transfers are below the Nil Rate Band, there is no taper relief because there is no tax on those transfers against which it can be set.

That is what I understood, but I keep reading articles that do not make that clear at all/ not properly explained.
They all give the impression that every gift of any size is reduced . So if you make a gift of £50K and die in say 3 years, only a part of that gift is counted into the estate. That is how the articles read anyway.