Where the value of a person’s estate was increased by a chargeable transfer made not more than five years before his death, the IHT chargeable on death is reduced by a percentage of the tax charged on so much of the value transferred by the first transfer as is attributable to the above increase. The relief applies only where there has been a transfer to the deceased within five years before his death and where the second occasion of charge is his death. The percentages are:

100% if the first transfer is made within one year of death;

80% if the first transfer is made within two years of death;

60% if the first transfer is made within three years of death;

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