The tax is calculated as follows (see Key Data ¶8-000):

(1)ascertain the transferor's cumulative total prior to the latest transfer;

(2)add on the latest transfer;

(3)calculate the tax on the total;

(4)subtract the tax payable on the previous total.


C, who has a cumulative total of £250,000, makes a chargeable gift of £90,000 on 1 May 2019.

Tax on the gift



Previous cumulative total


Add: chargeable transfer


New cumulative total



Tax on £340,000 (2019–20 rates: see ¶8-000):

On first £325,000


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