From: john boyle 
Newsgroups: uk.finance
Subject: Re: Can I be taxed on receiving a gift?
Date: Sun, 26 Sep 2004 21:31:39 +0100

In message , Terry Harper 
 writes
>You need to read the Inland revenue's website on the subject. Gifts up to
>£3,000 in any one year are exempt, as are gifts made out of income. There
>are other exemptions as well. Other gifts are "Potentially Exempt Gifts".
>
>When someone dies, the amount of any potentially exempt gifts made in the
>previous 7 years are added to their estate for the calculation of IHT. There
>is a complicated calculation related to how long ago the gift was made. They
>are part of the estate which is then exempt from IHT (unless they exceed the
>nil-rate band). The estate pays any IHT which is due, not the donee.

No. on a PET (its 'Transfer' not 'Gift') the beneficiary pays the IHT, 
NOT the estate.
-- 
John Boyle