Calculation of principal (10-year) charge before 18 November 2015

Produced by a Tolley Trusts and Inheritance Tax expert

Trusts and Inheritance Tax

Guidance

For a relevant property trust, a charge to inheritance tax will arise every 10 years. This guidance note explains how to work out the amount of tax payable when the 10-year anniversary fell before 18 November 2015 and the trust was created after 27 March 1974. Changes to elements of the calculation were introduced in F(No 2)A 2015. The current method of calculation for occasions of charge arising on or after 18 November 2015 is described in the Principal (10-year) charge guidance note.

See the Relevant property guidance note for an explanation of what relevant property is and how the date of the anniversary is determined.

Changes from 18 November 2015

See the Principal (10-year) charge guidance note for how the 10-year charge is calculated from 18 November 2015.

The key changes are:

•
non-relevant property is removed from all elements of the calculation for occasions of charge on or after 18 November 2015, the date of Royal Assent of F(No 2)A 2015
•
the inclusion of same-day

Access this article and thousands of others like it
free for 7 days with a trial of Tolley+™ Guidance.

TAKE A FREE TRIAL

Popular Articles

Personal Tax

Foreign tax relief

Foreign tax reliefIncome and gains may be taxable in more than one country. The UK has three ways of ensuring that the individual does not bear a double burden:1)treaty tax relief may reduce or eliminate the double tax2)if there is no treaty, the individual can claim ‘unilateral’ relief by deducting

14 Jul 2020 11:44 | Produced by Tolley Read more

Tax Returns

Trusts and Inheritance Tax

BPR ― trading and investment businesses

BPR ― trading and investment businessesIntroductionThe basic qualification rules for business property relief (BPR) are illustrated in the Flowchart ― trading or investment business for BPR purposes.For an overview of BPR, see the BPR overview guidance note.Relevant business propertyThe main

14 Jul 2020 15:36 | Produced by Tolley Read more

Trusts and Inheritance Tax

Gifts with reservation ― overview

Gifts with reservation ― overviewIntroductionA gift with reservation (GWR) arises when an individual ostensibly makes a gift of his property to another person but retains for himself some or all of the benefit of owning the property. The legislation defines a gift with reservation with reference to

14 Jul 2020 11:48 | Produced by Tolley Read more

��˾��ҹ��