Commentary

I12.724 Planning for the 10 yearly charging regime

IHT, trusts and estates

I12.724 Planning for the 10 yearly charging regime

I12.724 Planning for the 10 yearly charging regime

Before each ten-yearly anniversary of a discretionary settlement and, in the future, trusts made in lifetime after 22 March 2006, the trustees should review the tax position. Normally, the value of the settlement will have substantially increased over the ten-year period and, as already explained, the rate of tax on capital distributions after the anniversary date will be the effective rate of tax paid on the anniversary; very often this will be higher than that which applies prior to the ten-yearly date. Therefore capital distributions prior to the anniversary date may produce

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