PETs

[stewamax]

A and B are married and have a joint current account from which either can authorise payments.

If a substantial gift payment is made from the account to their adult child and A (say) then dies within 7 years afterwards with B still around, are the PET rules applied to half the gift on A's demise?

Further, if at the time of the gift A was terminally ill but B was in robust health, would it suffice (to avoid transfer tax) for B to set up a sole account, move the money from the joint account, and then make the gift?

[Lootman]

There was a question here like this a few months ago. Can't recall where and when but I'll bet Pink Dalek can.

As I recall the answer was half, as you suggest.

I came up with a rather elaborate scheme whereby each parent makes a separate gift, the child takes one and not the other, and nobody knows which gift was accepted. That gift can then later be retrospectively attributed to the surviving spouse, if it is beneficial to do so.

Not everyone was convinced my cunning plan would work but it might be fun trying.

[stewamax]

I came up with a rather elaborate scheme whereby each parent makes a separate gift, the child takes one and not the other, and nobody knows which gift was accepted. That gift can then later be retrospectively attributed to the surviving spouse, if it is beneficial to do so.

Hmm... sounds like one of the avoidance schemes HMRC insist you register in advance!

[PinkDalek]

There was a question here like this a few months ago. Can't recall where and when but I'll bet Pink Dalek can. ...

Not easily, no, but, yes, I do recall a thread or two on the subject and a look at the subject titles here (some are more helpful than others) viewforum.php?f=49 finds this one from Clariman along the same lines:

Potentially Exempt Transfers
viewtopic.php?f=49&t=4177

It contains some 90 posts and may be worth the OP studying the replies. I'm not sure how the thread progressed, as I haven't read it since April 2017, although a quick glance suggests it covered a number of different aspects.

[Lootman]

There was a question here like this a few months ago. Can't recall where and when but I'll bet Pink Dalek can. ...

Not easily, no, but, yes, I do recall a thread or two on the subject and a look at the subject titles here (some are more helpful than others) viewforum.php?f=49 finds this one from Clariman along the same lines:

Potentially Exempt Transfers
viewtopic.php?f=49&t=4177

It contains some 90 posts and may be worth the OP studying the replies. I'm not sure how the thread progressed, as I haven't read it since April 2017, although a quick glance suggests it covered a number of different aspects.

Yes, that's the one I was thinking of. It has some similarities.