Is an asset swap a PET?

[Umar]

Hi

My father partially swapped an asset with my brother 5 years ago.

He gave away an asset worth £50k but gained an asset worth £90k. No cash was exchanged, ie both were gifts.

How do I work out the NRB usage? He has £300k of other assets, excluding both of the above.

[someone]

It looks to me as though your brother made a gift of 40k to your father. Therefore no effect on your father's estate (other than it appears he has 390k of assets instead of 350k)

The 40k will be a PET should your brother die in the next 7 years.


The other possibility, that these were unrelated gifts, is that your father made a PET of 50k and your brother one of 90k. But the way you worded your question suggests one was exchanged for the other hence the gift is the difference in value.

Not paying cash for something is not the same as receiving a gift.