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

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