Calculation of exit charge before 18 November 2015

Produced by a Tolley Trusts and Inheritance Tax expert

Trusts and Inheritance Tax

Guidance

This guidance note describes the method of calculating an exit charge when the occasion of charge (that is the date of the beneficiary’s entitlement) was before 18 November 2015. The calculation of the exit charge on occasions of charge after that date is provided in the Exit charge guidance note, which also illustrates the most recent amendments. This guidance note provides:

•
a summary of the changes
•
a description of the old style calculation

The exit charge

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

•
the exit charge
•
the proportionate charge

IHTA 1984, s 65

See the Relevant property guidance note for an explanation of what relevant property is.

The comments on obtaining valuations in the Principal (10-year) charge guidance note apply equally here.

Summary of the changes

In summary, the changes to the exit charge calculation relate to the notional transfer, which is explained below. All other

Access this article and thousands of others like it
free for 7 days with a trial of Tolley+™ Guidance.

TAKE A FREE TRIAL

Popular Articles

Personal Tax

Taxation of dividend income

Taxation of dividend incomeIntroductionA dividend is a distribution of profit by a company to its shareholders.A dividend is not only a payment in cash. It can be the issue of new shares in exchange for forfeiting the right to a cash payment (a stock dividend). For more detail, see the Cash

14 Jul 2020 13:48 | Produced by Tolley Read more

Tax Returns

Owner-Managed Businesses

Bad debts

Bad debtsBad debts usually arise where goods or services have been provided to a customer, for which payment has not been received within a reasonable or specified time period, or for which the customer is unable to pay. It is necessary to determine the quantum of relief that can be claimed for bad

14 Jul 2020 15:34 | Produced by Tolley Read more

Employment Tax

Classes of NIC and who pays them

Classes of NIC and who pays themClass 1 NICClass 1 NIC is payable on earnings paid to an employed worker which derive from, or are treated as deriving from, an employed earner’s employment in the UK. There are two kinds of Class 1 NIC, primary contributions for which the employee is liable and

14 Jul 2020 11:13 | Produced by Tolley in association with Jim Yuill at The Yuill Consultancy Read more

Brexit

��Ӱ��