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 鈥極ther Gifts Chargeable When Made鈥�.

Where you increase the value of the chargeable transfer for grossing (IHTM14593), include the addition as 鈥榗ash鈥�.

Include the PLCT (IHTM31182) in the鈥� 鈥楥alculation of Inheritance Tax鈥� window.

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