IHTM26155 | Step 4 - four stage grossing calculations: stage 3

Continuing using the lettering of paragraphs started at IHTM26154, the procedure for the third stage (IHTM26152) (re-grossing the tax-free specific gifts) is as follows:

G: Calculate the tax on the chargeable estate arrived at in paragraph F of IHTM26154

• taking account of the nil-rate band and any lifetime cumulative total (IHTM14501), but

• ignoring any property chargeable at a separate title (IHTM26211)

H: Find the value of the chargeable estate net of tax by deducting the tax at G from the value at F.

I: Re-gross the specific gifts not bearing their own tax using the formula

Value of specific gift not bearing their own tax (at their original value as reduced by interaction (IHTM26101)) × (Gross value of chargeable estate (from F at IHTM26154) ÷ Value of chargeable estate net of tax (from H))