potentially exempt transfer
potentially exempt transfer (PET)
England, Wales
A transfer of value made during the donor's lifetime, that comes within the provisions of section 3A Inheritance Tax Act 1984. A PET is only chargeable to IHT if the donor fails to survive for seven years from the date of the transfer of value.
For further information on PETs, see Practice note, Inheritance tax: Overview (www.practicallaw.com/resource.do?item=:42407149).

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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