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When trust property ceases to be relevant property, it becomes subject to a charge to inheritance tax. This charge is known as either:

1. •

   the exit charge

2. •

   the proportionate charge

IHTA 1984, s 65

This guidance note illustrates the method of calculating an exit charge when the occasion of charge, ie the date of the beneficiary’s entitlement, was before 18 November 2015. Changes to the elements of the calculation were introduced by F(No 2)A 2015, s 11. General commentary on the calculation of the exit charge is provided in the Exit charge guidance note, which also illustrates the most recent amendments. This guidance note provides:

1. •

   a summary of the changes

2. •

   a description of the old style calculation