My client has a Will that leaves 10% of his estate to charity. He has just made significant PETs in excess of the NRB.
We are planning for the future and need to estimate the potential liability for IHT on death. However, I am struggling to find clear direction as to whether or not the tax rate that applies to the PETs, in the event that the client dies and they fail now, would be 40% or 36%.
Logic suggests that it is 40%, but I have not been able to find anything that looks definitive. Can anyone point me in the right direction or help me translate the legislation?
Investec Wealth & Investment