IHTM31412 - Assessing: calculations: death estate: working out the aggregate chargeable transfer

Before you consider any calculations you must take account of all amendments to the values at every part of the estate. Amendments at one Entry (IHTM31011) may affect the tax to pay at another.

Find the value of all death estate Entries, (including IIP trusts (IHTM16061), GWRs at death (IHTM14301) and joint property (IHTM15011)) and add the values together.

To this total, add the value of the previous lifetime cumulative total (PLCT) (IHTM31413).

The result is the aggregate chargeable transfer (ACT).

Example

Alan died on 1 January 2011. His death estate contained

• Free Estate (Entry A) £330,000, and
• Will Trust (Entry B) £150,000.

Alan also made a lifetime transfer in Dec 2009 worth £50,000 (after reliefs).

£480,000 Death Entries

+£50,000 PLCT

£530,000 ACT