Continuing using the lettering of paragraphs started at IHTM26154, the procedure for the fourth stage (IHTM26152) (determining the chargeable part of the estate) is as follows
- Find the total of all the chargeable specific gifts (IHTM26011) by adding together
* the grossed up value at paragraph 'i'. of[IHTM26154](https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm26154), and
* the total value of any chargeable specific gifts which do bear their own tax ([IHTM26003](https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm26003))
- Find the total value of all the specific gifts by adding together
* the total value of all the chargeable gifts at 'j'., above, and
* the total value of any exempt specific gifts
- Deduct the total of the specific gifts at ‘k’ from the value of the estate for Inheritance Tax purposes (the value transferred) at that title to find the value of the residue (IHTM26003). If the total value of the specific gifts exceeds the value of the estate see the instructions (IHTM26180) on abatement caused by grossing up.
- Calculate the part of the residue which is exempt.
- Deduct the exempt part of the residue from the total residue to find the chargeable part of residue.
- Calculate the chargeable transfer at that title by adding together
* the total of all the chargeable specific gifts (at paragraph 'j'), and
* the chargeable part of residue (from paragraph 'n')