Tx notes fa22 Final

June 2023 to March 2024 exams
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Illustration 2 
Compute the Chargeable transfer figure for each of the following lifetime transfers: 
1
7 June 2021 
a gift to her daughter of £2,000
2
12 August 2021 
a wedding present to her son of £5,500
3
19 September 2021 
a gift to her husband of £20,000
4
9 July 2022 
a gift to her nephew as a wedding gift of £8,000
5
25 December 2022 
gifts of £200 each to two friends as a Christmas gift
6
25 March 2023 
a gift to a trust of a valuable painting worth £100,000
The gift on 19 September 2021 is exempt as a transfer between spouses. 
The gifts on 25 December 2022 are exempt as they are covered by the small gifts exemption. 
The gifts on 7 June 2021, 12 August 2021 and 9 July 2022 are PET’s. 
The gift into trust on 25 March 2023 is a CLT.
The chargeable transfer figures are then computed as follows:
7/6/2021
12/8/2021
9/7/2022
25/3/2023
PET
PET
PET
CLT
Transfer of value
2,000
5,500
8,000
100,000
Less: Exemptions
AE 2021/22
(2,000)
Marriage
(5,000)
AE 2021/22
(500)
Marriage
(1,000)
AE 2022/23
(3,000)
AE 2021/22 (b/f balance unused)
(500)
Chargeable Transfer
nil
nil
3,500
100,000

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June 2023 to March 2024 exams
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3. Potentially Exempt Transfers (PET) 
A PET is a lifetime gift made by an individual to another individual. 
With a PET, the original assumption is that the gift will be exempt IHT. There is therefore no IHT 
liability at the date of the gift.