[IHTM24180] Lifetime transfers: Failure to satisfy the additional conditions
Where the conditions (IHTM24173) are satisfied for only part of the gifted property, you should reduce a proportionate part of the value transferred to calculate the relief due, IHTA84/S124A (5). Where the conditions are not satisfied at all, the consequences depend on whether the transfer is a failed PET (IHTM04057) or an immediately chargeable transfer (IHTM04067).
When the conditions are not satisfied, the effect of IHTA84/S124A (1) is that in working out the tax payable on the transfer and establishing the transferor's cumulative total, the value transferred by the PET is ascertained on the basis that agricultural relief is not due.
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