IHTM42117 - Proportionate charges: excluded periods

First quarter聽

Proportionate charges can arise at any time during the life of the trust except that under IHTA84/S65 (4), no proportionate charge arises if the exit event occurs in the first quarter following聽

  • the day the settlement commenced, or聽

  • the date of a ten-year anniversary.聽

聽However, because there is no IHT charge the trustees will not be able to claim Capital Gains Tax (CGT) holdover relief under TCGA92/S260.聽 (CG66883)听

New will trusts - S144聽

IHTA84/S144 allows trustees to distribute from a will trust within two years of the death without a proportionate charge arising.(IHTM35181)

Again, there is no chargeable event, and so holdover relief does not apply to the transfer for CGT purposes.