IHTM42081 – Ten year anniversary: introduction

All discretionary trusts containing relevant property ( IHTM42161) incur a charge every ten years, at the ten year anniversary.

Ten year anniversary (TYA) means

• the tenth anniversary of the date on which the settlement commenced ( IHTM42221), and
• subsequent anniversaries at ten-yearly intervals.

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. ( IHTM42165)

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.