IHT and CGT may both be payable in respect of the same lifetime disposition and in some circumstances the IHT paid can be offset against the chargeable gain arising on the later disposal of the asset by the transferee. An offset is not available on the initial disposal of the asset.
Where the lifetime transfer was a potentially exempt transfer (PET)
Where the lifetime transfer was a PET then this may become chargeable to IHT if the transferor dies within seven years1.
Holdover relief can only be claimed
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