This guidance note describes the method of calculating an exit charge when the occasion of charge (that is the date of the beneficiary鈥檚 entitlement) was before 18 November 2015. The calculation of the exit charge on occasions of charge after that date is provided in the Exit charge guidance note, which also illustrates the most recent amendments. This guidance note provides:
a summary of the changes
a description of the old style calculation
When trust property ceases to be relevant property, it becomes subject to a charge to inheritance tax. This charge is known as either:
the exit charge
the proportionate charge
IHTA 1984, s 65
See the Relevant property guidance note for an explanation of what relevant property is.
The comments on obtaining valuations in the Principal (10-year) charge guidance note apply equally here.
In summary, the changes to the exit charge calculation relate to the notional transfer, which is explained below. All other
Payment of the remittance basis chargeRemittance basis chargeThe remittance basis charge is an annual charge payable by 鈥榣ong-term鈥� UK residents for the privilege of claiming the remittance basis.Taxpayers who wish to utilise the remittance basis (but do not qualify for it automatically) must pay
Losses on shares set against incomeUsually, allowable capital losses can only be set against chargeable gains. If the losses are not fully utilised against gains in the year in which they arise, the excess is carried forward to use against future gains. See the Use of capital losses guidance note
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