Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Inheritance Tax Manual

From
HM Revenue & Customs
Updated
, see all updates

Step 4 - grossing up: initial procedure for grossing up

Before starting the grossing calculation, you should make a note of the figures and values you will need. These are

  • the lifetime cumulative total (IHTM31413)
  • the total value transferred (IHTM04028) at the title where grossing up is required
  • the value (as reduced under interaction (IHTM26101) provisions if appropriate) of the specific gifts (IHTM26011) at that title in three separate groups

    • the value of the exempt gifts
    • the value of the chargeable specific gifts which do not bear their own tax
    • the value of the chargeable specific gifts which bear their own tax
  • the proportion of the residue that is exempt

After you have this information you should decide which type (IHTM26131) of grossing calculation to use.