R03 - NRB & CLT question
Hoolahan
Member
Hello
I am studying R03 at the moment and am a little confused about how CLT's affect the NRB. My question is, does making a CLT permanently reduce the available NRB or does the available NRB reset 7 years after making a CLT?
For example if someone made a CLT of £100k and died 8 years later, would their NRB be reduced by this 100K? Or as it was after 7 years, would it now drop out of consideration?
Ta
Comments
Hi,
Any transfer that is not an exempt transfer, whether it's a PET or a CLT, stops being included in the donor's estate after 7 years (calendar years, not tax years).
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Thanks Benjamin, so their NRB would be restored to the full 325k?
Correct 👍