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Where Taxpayers and Advisers Meet

IHT100

umeshg1
Posts:39
Joined:Wed Aug 06, 2008 3:55 pm
IHT100

Postby umeshg1 » Fri Jun 18, 2021 4:49 pm

A trust was established 7 years ago. The Trustees now want to close the Trust and distribute £350,000 to various beneficiaries. Do the Trustees have to complete form IHT100

Thank you

umeshg1
Posts:39
Joined:Wed Aug 06, 2008 3:55 pm

Re: IHT100

Postby umeshg1 » Fri Jun 18, 2021 4:52 pm

Sorry forgot to mention this is a Discretionary Trust

AGoodman
Posts:1247
Joined:Fri May 16, 2014 3:47 pm

Re: IHT100

Postby AGoodman » Mon Jun 21, 2021 3:15 pm

It depends whether the value of the asset(s) were over the nil rate band (or possibly over £260k, being 80%) when they were transferred into the trust.

This assumes the assets all went in at the beginning and the settlor had not made any chargeable transfers in the 7 years preceding the transfer into trust.

If the value back then was < 260k then it is unlikely any reporting is necessary.

(this is because the exit charge at year 7 is calculated from the original value of the assets)

Accumulations of income will make the situation more complicated.

umeshg1
Posts:39
Joined:Wed Aug 06, 2008 3:55 pm

Re: IHT100

Postby umeshg1 » Mon Jun 21, 2021 3:28 pm

Thank you for your reply


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