UUÂãÁÄÖ±²¥

Exit charge


Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance

Exit charge


Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance
imgtext

When trust property ceases to be relevant property, it becomes subject to a charge to inheritance tax. This charge is known as either:

  1. •

    the exit charge

  2. •

    the proportionate charge

IHTA 1984, s 65

This guidance note explains how to work out the amount of tax payable when an exit charge arises. It applies to occasions of charge which arise on or after 18 November 2015, which was the date of Royal Assent of the second Finance Act of 2015. F(No 2)A 2015 amended the rules for calculating the exit charge. The former method of calculation is outlined in the Calculation of exit charge before 18 November 2015 guidance note with a summary of the changes given below.

See the Relevant property guidance note for an explanation of what relevant property is.

This note should be read in conjunction with the Principal (10-year) charge guidance note. The

Access this article and thousands of others like it
free for 7 days with a trial of TolleyGuidance.

TAKE A FREE TRIAL
Powered by
  • 14 Sep 2022 09:52

Home/ Tolley Tax Guidance/ Trusts and Inheritance Tax / Advising on trusts — IHT

Popular Articles

Personal Tax

Income tax losses ― overview

Income tax losses ― overviewIncome tax losses can arise due to a number of reasons, but not all losses can be relieved against total income and some losses can only be set against certain types of component income. The table below is a summary of the main reliefs for income tax losses.Summary of

04 Mar 2021 12:19 | Produced by Tolley Read more Read more
Owner-Managed Businesses

Tax implications of administration and liquidation

Tax implications of administration and liquidationThis guidance considers the tax implications of a company going into administration or liquidation.Introduction to company administration and liquidationCompany going into administrationA company which is in financial difficulty may go into

14 Jul 2020 15:29 | Produced by Tolley Read more Read more
Employment Tax

Non-business expenses

Non-business expensesIntroductionIn order for an expense to be tax deductible it must be incurred because of an employee’s employment. Any non-business related expense is, therefore, not relievable except in some very particular circumstances.This guidance note deals with three separate issues. The

14 Jul 2020 12:16 | Produced by Tolley Read more Read more