IHTM04103 - Settled property: charges on temporary charitable trusts
Settled property which for a limited period, however defined, can be applied only for charitable purposes is excluded from the ten-yearly and proportionate charges.
But tax is charged when
- property ceases to be held for charitable purposes, IHTA84/S70 (2)(a) or
- the trustees make a disposition (IHTM04023) which reduces the value of the property so held, IHTA84/S70 (2)(b). Any application of the property for charitable purposes does not give rise to a charge.