Full charging provisions at
IHTM04096 and
IHTM04097.
Essentially, there is an ‘exit charge’ for
inheritance tax under IHTA84/S65 when there is a distribution or
disposition of some part of the relevant property trust.
The calculation is based on 3/10 of the lifetime rate of
inheritance tax (half death rates), currently 20%. So the maximum
rate is 6% (as for TYA charges).
The rate calculations depend on whether the exit charge
arises before or after the first ten year anniversary.
