IHTM26128 | Step 4 - grossing up: initial procedure for grossing up

From HM Revenue & Customs · Inheritance Tax Manual

Before starting the grossing calculation, you should make a note of the figures and values you will need. These are

  • the lifetime cumulative total ()

  • the total value transferred () at the title where grossing up is required

  • the value (as reduced under interaction () provisions if appropriate) of the specific gifts () at that title in three separate groups

    • the value of the exempt gifts

    • the value of the chargeable specific gifts which do not bear their own tax

    • the value of the chargeable specific gifts which bear their own tax

  • the proportion of the residue that is exempt

After you have this information you should decide which type () of grossing calculation to use.