Special trusts: flat rate charge
Tax is charged at a flat rate which tapers over time, depending on the period (countedin quarters) which has elapsed since the chargeable property became held on the trust. Donot count any period before 13 March 1975.
The rate is the aggregate of the following percentages:
|0.25%||For each of the first forty complete successive quarters in the relevant period||1-40 (first 10 yrs)|
|0.20%||For each of the next forty complete successive quarters in the relevant period||41-80 (10-20 yrs)|
|0.15%||For each of the next forty complete successive quarters in the relevant period||81-120 (20-30 yrs)|
|0.10%||For each of the next forty complete successive quarters in the relevant period||121-160 (30-40 yrs)|
|0.05%||For each of the next forty complete successive quarters in the relevant period||161-200 (40-50yrs)|
After 25 full years have elapsed, a rate of 21% will apply:
|0.25%||x first 40 quarters||=||10%|
|0.20%||x next 40 quarters||=||8%|
|0.15%||x next 20 quarters||=||3%|
Use manual template IHT308 (from Temp1.exe programme). Insert values for
- the value now chargeable,
- the rate
- any interest charge
and populate all other fields with a 0, including the thresholds.
Use the notes box to add a calculation of how the rate is calculated.
See the screenprint example.
Cross-out half death rates from the printed calculation. Remember to send acopy to Cashiers to update the accounting record. (IHTM31306)