IHTM42110 - Proportionate charges: introduction

All trusts containing relevant property (IHTM42161) incur a charge when there is a distribution or disposition of some part of the relevant property held within the trust. 

The charge is under IHTA84/S65 and is known as the proportionate or exit charge. Full charging provisions can be found at IHTM04096 and IHTM04097.

The following pages tell you how to calculate the tax under IHTA84/S65. The rate calculations depend on whether the exit charge arises before or after the first ten year anniversary. The rate may be anything up to 6%