PETs In my neck of the woods this has another meaning other than 'potentially exempt transfer' January is the month where many professional firms apply a good chunk of marketing budget to things like tax returns, ISAs, pensions, IHT planning and of course, the perennial landlord favourite, incorporation. With successive challenges to planning to leave a legacy, one planning option remains, at least for now. Survive 7 years and the value of the transfer of assets [typically into Trust] is outside of the estate. Simples. Or is it? What happens if the value of the asset falls in value? Many are reporting on the dramatic fall in value of property in our nation's capital. The domestic property market has flatlined so value is a relevant issue. If property valued at, say, £750,000 is gifted but at the date of the donor's death the value had fallen to £500,000 - what then? Good news? Possibly but not across the board. It may highlight a common misunderstanding of how tapering relief works. With the 'nil-rate' band of £325,000 now in its 17th year and frozen until April 2031 and IHT receipts at record levels, there is much to consider when addressing the matter of legacy. One client told me recently that the cost of dealing with this was simply too high. I pointed out that this was as nothing compared to making the Government his principal beneficiary. Hoping he has a rethink...

Posted by Chris Haley at 2026-01-29 07:46:52 UTC