Year 1 – Individual makes a PET of £325K
Year 3 – Individual makes a CLT into Trust of £325K
Year 9 – Individual dies
On death, the PET in year 1 is exempt as it has been made more than seven years since death. The CLT uses the NRB.
However, for the purposes of the ten year charge, ‘any chargeable transfers made by the settlor in the seven years prior to the start of the trust are taken into account’. (IHTM42086 and IHTM42255)
Does this therefore include the PET in year 1, even though it is exempt on death?
Thanks in anticipation.
I Will Solicitors Ltd