IHTM31233 - Assessing: COMPASS: chargeable lifetime transfers: additional charges

Where there are additional charges (IHTM14571), you can create an additional Entry and treat the calculation exactly as you would for a failed PET (IHTM31232).

But, remember that the cumulation (IHTM14573) figure may have changed since the lifetime calculation (at the time the transfer was made) to bring failed PETs into account.

Tax paid in lifetime

You will need to deduct any lifetime tax previously paid from the calculation. Enter this in the ‘less reliefs against tax’ box (IHTM31189). On IOP (IHTM31012) calculations use the box in the appropriate column.

Where you need to deduct lifetime tax and taper relief (IHTM14611) on the same calculation:

• add them together and enter the total in the ‘less reliefs against tax’ box and
• ensure that you explain clearly what the deduction relates to and how it is calculated in the notes box or by attaching a schedule.

If the calculation results in a repayment because the lifetime tax previously paid is greater than the death tax, do not issue the calculation. Instead, reduce the tax previously paid to equal the tax and interest charge now due to produce a nil calculation.