Commentary

I12.801 Distributions from discretionary trusts

IHT, trusts and estates

I12.801 Distributions from discretionary trusts

Division I12.8     Trusts

For updates affecting this Division please see Part I0 Updates

Rearrangement of existing trusts

I12.801 Distributions from discretionary trusts

The effective rate of IHT on an exit charge before the first ten year anniversary of a discretionary settlement created after 25 March 1974 is (broadly speaking) based on the property comprised in the settlement at its value immediately after it was settled. The rate of the first ten year charge on the other hand will be calculated on a hypothetical chargeable transfer based on the value immediately before the first ten year anniversary.

Consequently an exit charge incurred shortly

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