IHTM31232 - Assessing: COMPASS: chargeable lifetime transfers: failed PETs

Where a PET (IHTM04057) becomes chargeable because of a death within seven years, and tax is payable on that transfer itself, the calculations are part of the death case on COMPASS. You should:

• set-up each chargeable transfer as a separate Entry (IHTM31011), and
• calculate the transfers separately to the death estate.

Enter any fall in value relief (IHTM14621) at the data entry stage under the ‘Revaluation on death’ relief type.

Remember that COMPASS does not automatically include the PLCT, so you will have to include the correct figure yourself on the ‘Calculation of Inheritance Tax’ window (IHTM31182) when you raise the calculation.

COMPASS does, however, calculate any taper relief (IHTM14611) automatically.