IHTM31234 - Assessing: COMPASS: chargeable lifetime transfers: immediately chargeable transfers

If you have a lifetime file, with a lifetime reference, you can create a life case (IHTM31235) on COMPASS under the lifetime reference.

COMPASS will not allow you to create a life case under the death file reference - only one record under each reference is allowed.

If there is no life case reference, you will have to prepare a manual calculation (IHTM31301) for the immediately chargeable transfer (IHTM04067).

COMPASS

Set-up a new Entry for the transfer. If the type is

• a gift to a discretionary trust, or
• a gift to a company

Select the relevant statistics type.

If the type is

• a GWR (IHTM14301) where the reservation ceases during lifetime and the transfer is not a PET (IHTM04057), or
• another type of transfer chargeable when made

classify it under ‘Other Gifts Chargeable When Made’.

Where you increase the value of the chargeable transfer for grossing (IHTM14593), include the addition as ‘cash’.

Include the PLCT (IHTM31182) in the’ ‘Calculation of Inheritance Tax’ window.

COMPASS will calculate the tax at 20%, being half the death rate (IHTM14534).