All discretionary trusts containing relevant property (
IHTM42161) incur a charge every ten
years, at the ten year anniversary.
Ten year anniversary (TYA) means
The charge is under IHTA84/S64 and known as the principal
charge. It applies to the chargeable value of the relevant property
in the settlement
on the day before the TYA. You can deduct business
and agricultural reliefs to arrive at the chargeable value. (
Grossing never applies to the value at the TYA.
The following pages tell you how to calculate the tax under IHTA84/S66. The rate may currently be anything up to 6%. Apart from the relevant property itself, all other cumulative values are historic (not current) values.