Commentary

I5.313 Effective rate for exit charges

IHT, trusts and estates

I5.313 Effective rate for exit charges

I5.313 Effective rate for exit charges

The next step is to calculate the tax which would be charged, at half rates1, on the hypothetical chargeable transfer of the value established as detailed at I5.311.

The rate is calculated on the assumption that an assumed transferor, in the seven years ending with the day of the charge, had made total chargeable transfers equal to the amount made by the settlor in the seven years ending with the date on which the settlement commenced (ignoring transfers made on that day)2.

If the settlor made any potentially exempt transfers (PETs) in the seven years

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