Presenting gifts

IHT can be charged during an individual's lifetime in respect of gifts. Lifetime gifts can generally be classed into three categories; exempt, potentially exempt or a chargeable transfer. An exempt gift is totally exempt from IHT and is where for example, a gift is made between two UK domiciled spouses/civil partners. A Potentially Exempt Transfer (PET) is where a lifetime gift is made to either an individual, a Bare Trust or a trust created for a disabled person (as defined under section 89(4) IHTA 1984). If a donor survives the PET by seven years, it will be totally outside of his/her e...