I apologize for any confusion caused. Let's correct the calculation based on the information provided:

Given:
- Gift amount: £75,000
- Annual exemption: £3,000 (assuming it hasn't been used elsewhere)
- Gift made 5 years before Ishpal's death
- No other lifetime transfers

### Calculation Steps:

1. **Calculate Chargeable Amount:**
   \[
   \text{Chargeable Amount} = \text{Gift Amount} - \text{Annual Exemption}
   \]
   \[
   \text{Chargeable Amount} = £75,000 - £3,000 = £72,000
   \]

2. **Calculate Inheritance Tax (IHT) Rate:**
   - For gifts made between 3 and 7 years before death, the IHT rate is 32%.

3. **Calculate IHT Before Taper Relief:**
   \[
   \text{IHT (before Taper Relief)} = \text{Chargeable Amount} \times 32\%
   \]
   \[
   \text{IHT (before Taper Relief)} = £72,000 \times 0.32 = £23,040
   \]

4. **Apply Taper Relief:**
   - Taper relief reduces the IHT based on the number of years since the gift was made:
     - 5 years: 32% reduced to 24%

   \[
   \text{IHT (after Taper Relief)} = \text{IHT (before Taper Relief)} \times \left( \frac{100 - \text{Taper Relief \%}}{100} \right)
   \]
   \[
   \text{IHT (after Taper Relief)} = £23,040 \times \left( \frac{100 - 24}{100} \right) = £23,040 \times 0.76 = £17,542.40
   \]

### Conclusion:
The corrected IHT due in respect of Ishpal’s lifetime gift, considering taper relief, is **£17,542.40**.

If you have any further questions or need clarification, feel free to ask!

Here are 8 related questions for further exploration:
1. How does the annual exemption affect IHT calculations?
2. What is the current taper relief schedule for lifetime gifts?
3. How is the Inheritance Tax rate determined for gifts made before death?
4. What are the exemptions and reliefs available for IHT in the UK?
5. How does the nil-rate band work in IHT calculations?
6. Can you explain the implications of making multiple lifetime gifts?
7. What documentation is required to calculate IHT on lifetime gifts?
8. How does IHT apply to inherited assets versus lifetime gifts?

Understand how to calculate Inheritance Tax (IHT) for lifetime gifts with detailed steps and examples. This article explains the impact of annual exemptions and taper relief on IHT calculations, using a specific case scenario. Ideal for professionals needing clarity on IHT calculations.

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