Lifetime transfers: specific lifetime reliefs: double charges relief: applying the relief
When a double charge arises:
- retain the charge on the transfer which produces the higher overall amount of Inheritance Tax, and
- reduce the other transfer to nil.
There is an exception in certain discretionary trust cases (IHTM14732).
- retain the later transfer within the Inheritance Tax charge, and
- tax has been paid on the earlier transfer,
you may allow credit for some or all of that tax.