Commentary

I5.353 Periodic charge—the effective rate

IHT, trusts and estates

I5.353 Periodic charge—the effective rate

I5.353 Periodic charge—the effective rate

The next stage is to calculate the tax which would be charged, at half rates, on a chargeable transfer of the value established under I5.351 above, which is made immediately before the ten-year anniversary.

The chargeable transfers (if any) brought forward from I5.3521 to reduce the available nil rate band. These are, broadly, the greater of any CLTs before the settlement and any CLTs before any additions within the 10 years before the anniversary.

The nil rate band is further reduced by the aggregate of any transfers subject to exit charges within the previous ten years2.

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