No anniversary charge can apply before 1 April 1983.
For any trust made before 27 March 1974, the calculation of the ten yearly charge does not include
Where an addition is made to the settlement after 8 March 1982, the hypothetical cumulative total is the aggregate of the settlor's chargeable transfers made in the seven (ten years before 18 March 1986) years before the addition.
The first TYA must have passed in these settlements, so this charge cannot arise now.
For information only in relevant cases:
The main difference from the rules for settlements set up since 26 March 1974 is in the calculation of the rate of the proportionate charge on an occasion arising before the first ten year anniversary of the settlements. The settlement is treated as a separate taxable entity.
There is no fraction by reference to the number of fortieths.
The rate of tax is:
The rate of charge is reduced if property has not been relevant property throughout the ten years preceding the first anniversary.
The position is the same as for trusts set up after 27 March
1974. The charge is based on the rate charged at the last
anniversary (with the exceptions as described above).
(This text has been withheld because of exemptions in the Freedom of Information Act 2000)