chargeable lifetime transfer
England, Wales
Lifetime transfers of value (transfer of value) (broadly, gifts) that are immediately chargeable to inheritance tax at 20% (subject to any exemptions and reliefs and also subject to the individual's nil rate band). Broadly, a lifetime gift is immediately chargeable if it does not constitute a potentially exempt transfer (PET). The following are CLTs:
• Gifts to relevant property trusts.
• Gifts to companies.
• Gifts made by close companies (close company).
For further information on inheritance tax, see Practice note, Inheritance tax: overview.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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