you are here Inheritance Tax Inheritance Tax FAQs If I made an outright gift of over the nil rate band, would I pay any immediate inheritance tax?

If I made an outright gift of over the nil rate band, would I pay any immediate inheritance tax?

No. This becomes a potential exempt transfer (PET) and the seven year rule applies. 

Seek advice on which gift to make first i.e a gift into a trust followed by a PET or vice versa. Remember also a gift into an absolute trust is also a PET and does not suffer any of the aforementioned complications.

Other Inheritance Tax frequently asked questions:

  • How much is my estate worth for Inheritance Tax?
  • How soon will Inheritance Tax have to be paid?
  • What Inheritance Tax planning exemptions do I have?
  • What is a potentially exempt transfer?
  • Will all my gifts be effective for UK Inheritance Tax?
  • If I am making gifts or gifts into trusts which order should I do them in? 
  • If I have an existing trust, do I need to do anything about it ?
  • If I made an outright gift of over the nil rate band, would I pay any immediate inheritance tax?
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