IHTM30043 - Liability on potentially exempt transfers (PETs): recourse to transferor's personal representatives

The personal representatives (IHTM05012) of the transferor are liable under IHTA84/S199 (2), but in view of IHTA84/S204 (8) they are liable only to the extent that either

  • because of IHTA84/S204 (2), (3) and (5) no person is liable for the tax (or part of it) under IHTA84S199 (1)(b), (c) and (d)
  • the tax remains unpaid 12 months after the end of the month in which the death occurs.

IHTA84/S204 (2), (3) and (5) are limitations of liability provisions. The liability of the personal representatives is subject to the standard IHTA84/S204 (1) limitation (IHTM30032).

The circumstances in which recourse to the transferor바카라 사이트™s personal representatives is likely are

  • where the tax on the value transferred exceeds the value of the asset received by the transferee (IHTM30051) (e.g. the transferee receives a small minority holding of unquoted shares (IHTM18131), but the value transferred on the loss to the estate (IHTM04054) basis is considerably greater)
  • where recovery cannot be obtained from the transferee.

There are more detailed instructions (IHTM30044) on the secondary liability of the transferor바카라 사이트™s personal representatives. You must consider the instructions on applications for clearance certificates (IHTM40102) in respect of the free estate where tax on a chargeable potentially exempt transfer (IHTM04057) remains unpaid.

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