If the donor makes a PET first and then a subsequent gift into a discretionary trust (CLT) only the CLT would be looked at for entry charges within the 7 year period.
Combining PETs and CLTs. Some individuals may want to make a combination of outright gifts and gifts into ...
Read about the potential tax consequences of the order in which an outright gift is made as a potentially exempt or chargeable lifetime transfer (PET/CLT).
As gifts are placed in the order they were made, starting with the oldest and moving towards the date of death. CLTs made in the 7 years before the “failed” PET will ...
Remember that PETs are ignored when establishing the amount of NRB available for a CLT so even if the PET is made before the CLT, it will ...
The following suggestions assume no CLTs or PETs have been made in the ...
already made gifts without advice. Structures that do not create large chargeable lifetime transfers (CLTs) or potentially exempt transfers (PETs) at outset should ...
First, fully exempt gifts should be made, then loans to trusts, then CLTs, and finally PETs.
I have read that the 7 year clock is effectively reset on PETs within the last seven years when a CLT is made - does this mean the client has to ...
However, matters become a little more complicated if the deceased made the first gift (a CLT, not a PET) more than seven years before their ...