IHTM42110 - Proportionate charges: introduction

All trusts containing relevant property (IHTM42161) incur a charge when there is a distribution or disposition of some part of the relevant property held within the trust. 

»Ê¹ÚÌåÓýapp charge is under IHTA84/S65 and is known as the proportionate or exit charge. Full charging provisions can be found at IHTM04096 and IHTM04097.

»Ê¹ÚÌåÓýapp following pages tell you how to calculate the tax under IHTA84/S65. »Ê¹ÚÌåÓýapp rate calculations depend on whether the exit charge arises before or after the first ten year anniversary. »Ê¹ÚÌåÓýapp rate may be anything up to 6%