Tax is charged at a flat rate which tapers over time, depending
on the period (counted in quarters) which has elapsed since the
chargeable property became held on the trust. Do not count any
period before 13 March 1975.
The rate is the aggregate of the following percentages:
| Effective quarters | ||
| 0.25% | For each of the first forty complete successive quarters in the relevant period | 1-40 (first 10 yrs) |
| 0.20% | For each of the next forty complete successive quarters in the relevant period | 41-80 (10-20 yrs) |
| 0.15% | For each of the next forty complete successive quarters in the relevant period | 81-120 (20-30 yrs) |
| 0.10% | For each of the next forty complete successive quarters in the relevant period | 121-160 (30-40 yrs) |
| 0.05% | For each of the next forty complete successive quarters in the relevant period | 161-200 (40-50yrs) |
After 25 full years have elapsed, a rate of 21% will apply:
| 0.25% | x first 40 quarters | = | 10% | |
| 0.20% | x next 40 quarters | = | 8% | |
| 0.15% | x next 20 quarters | = | 3% | |
| TOTAL | 21% |
Use manual template IHT308 (from Temp1.exe programme). Insert values for
and populate all other fields with a “0”, including
the thresholds.
Use the notes box to add a calculation of how the rate is
calculated.
See the screenprint
example.
Cross-out ‘half death rates’ from the printed
calculation. Remember to send a copy to Cashiers to update the
accounting record. (
IHTM31306)
