If the disposal which triggers the charge under IHTA 1984, s. 126 is itself a chargeable transfer (including a potentially exempt transfer which becomes chargeable), s. 129 allows the tax chargeable under s. 126 to be set against the value transferred by the disposal.


The facts are as in the example in ¶653-400, and it is assumed that the woodlands did not qualify for business property relief on Andrew's death. At the time of the gift by Craig to David, Craig has a cumulative total of £350,000. Craig dies in 2017.

Tax on Craig’s transfer


Previous cumulative total


Value transferred to David


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