PRODUCT GUIDE
Mortgage Products
Legacy
Disclaimer
Pension Products
Contact
Protection Products
Investment Products
General
GENERAL
INHERITANCE TAX
Taper Relief
Where death occurs between three and seven years after making a PET or chargeable transfer, a reduction in the liability may be available due to "Taper Relief". The amount of the reduction is:
It should be noted that the relief applies to the amount of the liability - not the amount of the Chargeable Transfer. Since gifts are treated as the first slice in the calculations, they may fall within the Nil Rate Band with the result that there will effectively be no reduction in the liability. For example, the rate of tax payable on gifts falling within the nil rate band is 0% Therefore, if death occurred during year 6, there would be a reduction of 60% but 60% of 0% is Zero so there is no saving.
Mortgage Products
Legacy
Disclaimer
Pension Products
Contact
Protection Products
Investment Products
General
INHERITANCE TAX
Where death occurs between three and seven years after making a PET or chargeable transfer, a reduction in the liability may be available due to "Taper Relief". The amount of the reduction is:
| Death During Years | Reduction |
| 1 to 3 | 0% |
| 3 to 4 | 20% |
| 4 to 5 | 40% |
| 5 to 6 | 60% |
| 6 to 7 | 80% |
It should be noted that the relief applies to the amount of the liability - not the amount of the Chargeable Transfer. Since gifts are treated as the first slice in the calculations, they may fall within the Nil Rate Band with the result that there will effectively be no reduction in the liability. For example, the rate of tax payable on gifts falling within the nil rate band is 0% Therefore, if death occurred during year 6, there would be a reduction of 60% but 60% of 0% is Zero so there is no saving.
