A: The gift of the shares will be classified as a Potentially Exempt Transfer (PET). If the PET is made between 30 October 2024 and 06 April 2026, it falls into what HMRC refers to as the "transitional period." Therefore, if the client makes a PET during this period and passes away after 06 April 2026 but within 7 years from the date of transfer, there is an allowance of £1 million instead of full relief. Any balance over £1 million will be subject to an effective rate of inheritance tax (IHT) of 20%.
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