Can anyone please advise on PET treatment.
For IHT purposes is the PET value taken at the time the gift is made or upon the death of the giver? e.g.. Some property is transferred now with a value of 100,000 and the giver dies after 5 years. Upon death the property value has risen to 140,000. Leaving aside possible declining tax rate from the 3 years after the time the gift was in force is IHT charged on the 100,000 or the 140,000?
Thanks in advance.
A PET is always the value of the gift at the time of transfer. In your example, it would be the £100,000.
To be precise, it is the loss of value to the donors estate at the time of transfer.
"For IHT purposes is the PET value taken at the time the gift is made or upon the death of the giver? e.g.. Some property is transferred now with a value of £100,000 and the giver dies after 5 years. Upon death the property value has risen to £140,000. Leaving aside possible declining tax rate from the 3 years after the time the gift was in force is IHT charged on the £100,000 or the £140,000? "
As Simon said, it's the value at the time of the gift that matters for IHT. But remeber this: if the giver continues to live in the poroperty then it does not count as a gift for IHT but remains in the estate as a 'gift with reservation'. It will then be taxed as 140k. Worse than that, the recipient will be liable for capital gains tax on the 40k growth because the gift DOES count as a givft for CGT purposes.
Robert
Also there is almost certainly no "declining tax rate from the 3 years after the time the gift was in force" for this gift.
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