PETs - How to schedule Potentially Exempt Transfers (PET's) (gifts) as expenses - UK

Gifts to individuals and charitable gifts (and the tax credits provided by them) can be entered on the Expenses > Legacy Expense

Select the Recipient from among the people in the plan, as a Person Outside of Plan, or as being a Charity.

 Click Timing on the left hand menu. If an event exists for the year when you want the gift/donation to be made, click on the event icon and then click Set as Start Event. If an event doesn't exist yet, double click on the bar of the chart for the year when you want the gift/donation to be made to create a new event. Give it a name and then select Set as Start Event

- If the gift is to be a one-off, select the event on your Timeline to indicate the year in which the gift will be made.

- If these will be a series of gifts made over several years, select an event to indicate when these gifts will begin and an event to schedule their end.

These legacy gifts will be treated as potentially exempt transfers and will be potentially tax exempt to the recipient, depending on the proximity of the timing of the gift and the mortality of the person gifting, as set in the planning timeline.

PET's can be viewed on the Overview > Legacy screen and can be output from into printable reports from the Reports screen, by selecting the  Estate Analysis Detailed option.

Also Note: If your client has any PETs Carryover PET's or a nil rate band carryover, from the death of a spouse, that pre-date the start of the plan, these can be entered on the Carryover Assumptions screen.


How to model a gift or charitable donation