A question about double taxation relief for GWROB.
Where there is a failed PET subject to a GWROB, if the higher IHT calculation is the tax on the gift, presumably the recipients pay the tax?
However, if the higher calculation is achieved by adding the value of the PET into the death estate, who pays the IHT, is it apportioned between the PRs and the recipient of the gift and what if there is insufficient in the residual estate to pay the IHT from the assets?
The recipient of the gift was a child and the gift was the testator’s main residence, which he continued to reside in rent free.
The remaining estate is small and the two siblings are the beneficiaries.