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HMRC internal manual

Capital Gains Manual

HM Revenue & Customs
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Gifts: Inheritance Tax: Relief for Inheritance Tax paid: hold-0ver claims under section 165 TCGA 1992

TCGA92/S165 (10)

The relief for inheritance tax paid also applies if there was a hold-over claim under TCGA92/S165 but there is one significant difference. Relief is given for any Inheritance Tax paid if a gift that was a PET becomes a chargeable transfer because the transferor dies within seven years. If the transferee has already paid Capital Gains Tax because he or she has disposed of the asset in question TCGA92/S165 (10) allows for any necessary adjustment to be made by repayment.