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TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15979
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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If the value of a discretionary trust is less than the IHT

Customer Question

If the value of a discretionary trust is less than the IHT nil rate band on the 10th anniversary is there a ten year charge on the trust?
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.

Let me take a look at this and I'll get back to you.
Expert:  TonyTax replied 2 years ago.
Hi again.

Take a look under the heading "The 10-year anniversary charge" here for basic information on the IHT 10 year anniversary charge.

There is some commentary changes to the 10 year charge proposed in the March Budget here

Assuming that no other trusts were set up on the same day by the same settlor, there have been no additions to the trust since it started or the last 10 year anniversary, then the full £325,000 nil-rate band will be available to the trust. There will be no charge if the value of the assets is less than the nil-rate band available to the trust.

Take a look here for some detailed guidance on calculating the 10 year charge.

I hope this helps but let me know if you have any further questions.
Expert:  TonyTax replied 2 years ago.
I have to go out for a short while but will be back in about 30 minutes.