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IHT and annual exemption

My client gave away his car , as he could no longer drive, a few months before he died in March 2012.

I'm filling in form IHT 400 and I would like to exclude all mention of the car. My reason is that the value of the car was less than £6,000, so the lifetime annual exemtions annual exemptions for 2010/11 and 2011/12 are available to wipe out any PET. Is this OK?

No experience of IHT ouside of an exam room. Thanks

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By blok
12th Jul 2012 14:21

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whilst the IHT legislation is full of little traps for the unwary, you are OK.

The gift is a PET but its value is covered by the annual exemption which you can claim in the year of death and the previous ytear if not used.

I assume this is his only gift in the year because the exemption will use up the earliest gift first.

 

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12th Jul 2012 15:13

thanks

Many thanks, Blok, this is just the reply I'd hoped for.It was indeed his only gift in the year

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