potentially exempt transfer


Also found in: Acronyms.

potentially exempt transfer (PET)

a TRANSFER OF VALUE which is initially exempted from INHERITANCE TAX but which becomes chargeable if the transferor dies within seven years.
References in periodicals archive ?
A In reality, you can gift as much as you like, but anything over your annual gifting allowance for inheritance tax purposes will become a potentially exempt transfer, and the seven-year rule applies before the gift falls outside your estate.
A Potentially Exempt Transfer (PET) is the term for gifting away money during our lifetime.
So any hight amount would become a potentially exempt transfer, and the seven-year rule applies.
ATHE money will be classed as a potentially exempt transfer and, providing you live a full seven years from the date of gift, will be deemed outside your estate.
The gift known as a Potentially Exempt Transfer will normally be free from IHT providing you live for seven years after you make the gift.
a valuable racehorse) is given away in the hope that the donor will live seven years, it is known as a potentially exempt transfer (PET).
A You can gift as much as you want, but any amount over PS3,000 becomes a potentially exempt transfer under the seven-year gifting rule.
Any monies in excess of this paid to the overseas spouse would have been treated as a potentially exempt transfer.
A potentially exempt transfer is where a large gift of wealth to another individual is made.
This is what is called a potentially exempt transfer.
You can pass assets to family and friends during your lifetime as you like by using the potentially exempt transfer rules.
So any amount higher than PS6,500 would become a potentially exempt transfer, and the seven-year rule applies.

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