Part I
| Jul 1987 | A makes PET of £100,000 to B. | |
| Jul 1988 | A makes gift into discretionary trust of £95,000. | Tax paid £750 |
| Jan 1989 | A makes further gift into same trust of £45,000. | Tax paid £6,750 |
| Jan 1990 | B dies and the 1987 PET returns to A. | |
| Apr 1991 | A dies. His death estate of £300,000 includes the 1987 PET returned to him in 1990, which is still worth £100,000. |