A new client of mine (single person), for family and cash flow reasons, gifted his mortgage free Principal Private Residence to his mother 8 years ago . The MV was then £450K. He continued to live there without paying any market rent and/or any other form of contributions to his mother. He did not have to pay any CGT 8 years ago as the asset was an "Exempt Asset". He is in a poor state of health and he could pass away within next 2 years. What is the Inheritance Tax situation please ? Am I correct in assuming that "Surviving for 7 years" is red herring as the gift made 8 years ago failed due to anti avoidance rules of "Gifts with reservation of benefits". Making matters more complicated, his mother intends to sell the property now as she is the legal owner and registered as such at Land Registry. Will this make any difference to his Inheritance Tax situation arising, say in 18 months time ? With house sold (current MV £850K), he will move to his brother's home and with "Rewards and Benefits" attached to the original gift all ceasing.
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Where are you getting your information about the past transactions? Your new client's memory? His mother's? Copies of documents detailing advice they took at the time?
AA is right that the back story can have current tax effects (that's the whole point of doing tax planning, after all).
If what you have is a simple reservation of benefit situation with no other factors (by the way, I don't believe that's what you do have - you really need to investigate further), then as Matrix says there is a PET as and when the benefit is given up.
Say that PET is £844k and your new client dies next year with no other assets and no other relevant IHT transactions, that tax bill (£207,600, if I can read my writing on the back of this postage stamp) will (I would think.... though you might want to check this - maybe start another thread) fall on mother. Unlike in another current IHT thread, there's no IHT relief for the CGT she is due to pay on the sale.
Of course, mother is not your client. So I don't know what your obligations are to her. But the tax here is, to most normal people, a significant sum.
So you better find out both what your obligations are and what the back story really is.
I had a further thought as the PET is deemed not real. So I had a quick look. IHTM04072 confirms theres no AE to reduce the PET. Tax could be £2,400 more than I said.