Lifetime transfers of value (broadly, gifts) that are immediately chargeable to inheritance tax. Broadly, a lifetime gift is immediately chargeable unless it is an exempt transfer or a potentially exempt transfer (PET) (section 2, Inheritance Tax Act 1984). The rate of tax for lifetime transfers that exceed an individual's nil rate band is 20% (subject to any reliefs).

For example, the following may be chargeable lifetime transfers:

For further information on inheritance tax, see Practice note, Inheritance tax: overview.