Commentary

I5.354 Periodic charge—amount of tax payable

IHT, trusts and estates

I5.354 Periodic charge—amount of tax payable

I5.354 Periodic charge—amount of tax payable

Each of the following must be taken in turn to establish the value upon which the charge is assessed:

(1) Consider whether any part of the value on which the periodic charge is imposed is attributable to property which was not relevant property, or not comprised in the settlement, throughout the whole of the period of ten years1. Regarding the identification of the trusts property see Identifying mixed relevant property at I5.317.

For ten year anniversary charges arising on or after 6 April 2014, income not subject to an interest in possession and which arose from relevant property in the settlement more than five years prior to the anniversary date is to be regarded as having been relevant property throughout the whole of the ten year period up to the anniversary.

This does not however apply if the settlor was

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