I5.318 Exit charge before first anniversary—examples
Example 1—hypothetical value
On 26 July 2005 Eliza settled £600,000 on trust — half as a QIIP for her son Ian and half on discretionary trusts. On the same date she settled quoted shares worth £100,000 on trust for her daughter, Sheila, for life.
Because this is before 18 November 2015, the non-relevant property (the QIIP half) is included in the calculation.
The value of the hypothetical value transferred is £700,000.
Example 2—tax at half rates
Eliza made chargeable lifetime transfers (CLTs) before July 2005 totalling £85,000.
The notional charge is therefore: