The Inheritance Tax (IHT) treatment of discretionary (relevant property) trusts can be complicated. This might apply to entry charges, principal charges and exit charges.
An IHT charge may be triggered when settling assets on trust, on each 10th anniversary from the creation of the trust, and when assets are distributed from the trust on exit.
Where certain conditions are met, it will be necessary to submit IHT compliance to HMRC in support of the calculations. HMRC realised a new suite of forms in May 2025; more information can be found on their website.
Need some guidance?
If you wish to understand your tax compliance obligations as a trustee, or require assistance with calculating IHT due, and/or need confirmation of whether any IHT compliance must be submitted to HMRC, please contact us…
