Principal (10-year) charge

Copyright © 2024 LexisNexis
Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance

Principal (10-year) charge

Copyright © 2024 LexisNexis
Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance
imgtext

Trustees of a relevant property trust are charged to inheritance tax on each 10th anniversary after the trust was created. This charge is known as any of the following:

  1. •

    the principal charge

  2. •

    the periodic charge

  3. •

    the 10-year charge

  4. •

    the decennial charge

IHTA 1984, s 64(1)

This guidance note explains how to work out the amount of tax payable on a 10-year anniversary for a settlement that was created on or after 27 March 1974. It applies to occasions of charge on or after 18 November 2015, which was the date of Royal Assent of the second Finance Act of 2015. F(No 2)A 2015 amended the rules for calculating the principal charge. The former rules are outlined in the Calculation of principal (10-year) charge before 18 November 2015 guidance note.

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  • 14 Sep 2022 10:04

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