Share this content

IHT and annual exemption

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


Please login or register to join the discussion.

By blok
12th Jul 2012 14:21


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.


Thanks (0)
to nkwayne
12th Jul 2012 15:13


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

Thanks (0)