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HMRC internal manual

Inheritance Tax Manual

Ten year anniversary: rate of tax

The rate for the ten yearly charge is 3/10ths of the rate which would be charged on an immediately chargeable lifetime transfer (as if the trust funds were hypothetically transferred at the TYA date). The lifetime charge is currently half the death rate; 20%.

  • Therefore, 3/10 x 20% = 6% maximum

The amount of IHT threshold available against the assumed chargeable transfer (IHTM42085) is reduced to account for previous cumulative transfers (IHTM42086)

A reduction is available for assets which have not been in the trust for the whole tenyears.