Understanding inheritance tax (IHT) on lifetime transfers

For financial advisers only

On completion of this module you should be able to:

  1. describe whether a transfer is exempt, potentially exempt or chargeable
  2. explain how gifts made within seven years of death may be taxed
  3. determine what IHT relief or exemptions may be available on lifetime gifts

Introduction

Inheritance tax can severely impact what can be passed on to future generations. But with the right planning the effect of IHT can be minimised. It is therefore essential for advisers when considering wealth transfer to understand the taxation of lifetime gifts.

This module is in two sections and should take around 60 minutes to complete. Once you have completed all the sections there is a short self-assessment quiz to check what you have learned and a CPD certificate for up to 60 minutes can be claimed.

This section of the module highlights when tax may be payable on the lifetime transfer and how any IHT charge would be calculated. In addition it covers the implications of retaining a benefit from gifted property and also when relief may be available.

Please read our Technical Guide – IHT on lifetime transfers before moving on to the next part of this module.