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PET Gifts
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If it is known that the only IHT that is due on an estate is say the result of a gift of £10000. being made within 7years of a persons death which HMRC form needs to be completed?....IHT205 or IHT400
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Doesn’t this indicate that the Executor would use this form?
No, because right at the top of the form it says it is only to be used where the estate is equal to or or less than the nil rate band, or up to 2 times that where the a transferable NRB can be applied, or where the estate is under £1 and spousal exemption can be applied.
None of those conditions have been met in your case so you have to go with IHT 400.
If the estate is going to the surviving spouse, so not using up the nil rate band, why is inheritance tax due on £10,000 of gifts? The PET gift is not exempt because the person didn't survive the 7 years, but it would be within the nil rate band, and the rest of the estate is going to the spouse, but you say IHT is due on the gift?
I have been a little confused about the gift, the 7year rule and IHT.However my query was to try and establish which IHT205 or IHT400 applied.Now,from your helping me identify the position wrt to the gift I think it would be IHT205...do you agree?
I have been a little confused about the gift, the 7year rule and IHT.However my query was to try and establish which IHT205 or IHT400 applied.Now,from your helping me identify the position wrt to the gift I think it would be IHT205...do you agree?