INHERITANCE TAX
Potentially Exempt Transfers
Most gifts, which are made in excess of the above allowances, are deemed to be Potentially Exempt Transfers (PETS).They are made subject to you surviving for seven years after the gift was made. If you live for the full seven years there will be no IHT liability on the gift made. If you however die within this period then IHT will become payable.
This may be at a reduced rate but only applies if you have given away more than the current nil rate band i.e. the amount of money that can be transferred at death without an inheritance tax liability, within three to seven years of your death. Please ask us for further details.