I am getting a bit confused on nil rate band dicretionary trust.
Assuming that there are no distributions, when we get to the first ten year anniversary do I take the value of relevant assets at that date reduce it by the trustees nil rate band and then charge tax at 3/10 x lifetime rate (ie = 6%)?
This then sets the effective rate for any distributions between principle charge dates, but assuming there are none, what happens at year 20 anniversary. Is another nil rate band deduction available again to reduce the value of the fund as at that 20 year date or is the charge then on the full value of the fund?
confused......
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