- The IHT regime for relevant property trusts imposes an IHT charge on every 10-year anniversary and when capital leaves a trust.
- The calculation of the tax charge is complicated and HMRC has consulted on ways to simplify the calculation whilst protecting tax revenues. Unfortunately, it now appears there will not be any major simplification.
- There is only a limited range of trusts that are not relevant property trusts.
- If you do not file a return for your trust 10-year anniversary, or when an exit charge arises, the trustees will face a penalty.
- Even if your trust does not have an IHT liability at the 10-year anniversary point you may still need to file a return within given deadlines.
