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HMRC internal manual

Inheritance Tax Manual

Discretionary trusts: Heritage

Heritage section deals with all aspects of claims for Conditional Exemption (IHTM11260), or Offers in Lieu of Tax. You cannot raise a final calculation Inheritance Tax on a trust charge until you have received their advice.

Refer the file to Heritage section giving details of

  • the date and type of claim
  • the property on which exemption is claimed
  • likely tax at stake
  • the acting agent/trustee

If Conditional Exemption is agreed,

  • IHTA84/S78 gives exemption from exit charges on heritage property comprised in a discretionary settlement.
  • IHTA84/S79 gives exemption from ten yearly charges. The claim must be made within 2 years of the date of charge.