Am I right in believing there is no gain from taper relief for a failed PET unless the value of the gift itself is greater than the NRB?
I am led to understand that a gift will use up the available NRB first so in many instances will be tax free. Because there is no IHT liability, there is no need or requirement to apply taper relief on the gift. The result in reality though is that because of the reduced remaining NRB, more of the remainder of the estate is exposed to IHT. So where an estate is greater than the remaining NRB, we are effectively still paying 40% IHT on the value of a gift that could have been made 6yrs 11 months before DOD. If the gift had been made 7 yrs before DOD then there would be no tax to pay.
So in what instance may taper relief actually be useful?
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