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HMRC internal manual

Inheritance Tax Manual

From
HM Revenue & Customs
Updated
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Relevant property trusts: chargeable events

A transfer of assets into a trust of relevant property (IHTM42161)is an immediately chargeable transfer by the settlor. (IHTM42075)

The main occasions of charge on relevant property are

  1. A proportionate/exit charge on distributions or dispositions from the trust in the first ten years since property was first added to the settlement (before the first ten year anniversary)
* The claim is under IHTA84/S65 and the tax is calculated under IHTA84/S68
  1. The ten year anniversary (the principal charge)
* The claim is under IHTA84/S64 and the tax is calculated under IHTA84/S66
  1. A proportionate/exit charge on distributions or dispositions between ten year anniversaries
* The claim is under IHTA84/S65 and the tax is calculated under IHTA84/S69

Charging provisions are explained in more detail at section 4 of the manual from IHTM04095