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HMRC internal manual

Inheritance Tax Manual

HM Revenue & Customs
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Excepted settlements - accounts delivered for transfers that qualify as excepted transfers or terminations

Where an account is delivered for a chargeable event that qualifies as an excepted settlement, you should return it to the taxpayer or agent, explaining why it is not necessary to deliver an account at this stage. You should make the point that although the trustees may be excused from delivering an account at the time the transfer is made, they must still keep a record of the event so it can be taken into account when future events occur. You should also mention that if the settlor dies within seven years of any PETs that might cumulate with the settlement, it may mean that an account needs to be delivered, as the notional aggregate of chargeable transfers may alter (IHTM06130).