DISCRETIONARY TRUST - PERIODIC CHARGE

[pdfx4]

I am the trustee of a discretionary Trust which was made November 2001. The capital of the trust consists of a single small cottage which has been let to different long term tenants over the years. Trust returns have been made every year by the trustees to HMRC for the income earned. R185 forms have been provided to the beneficiaries each year.
At the time the trust was set up I was advised that there was a 15 year periodic charge.
I therefore believed that I would hear from HMRC in November 2016. I did not do so. I now appreciate that this was probably wrong ?
In 2016 the market value of the property was less than £325,000. In the last couple of years the value has now probably exceeded £325,000
I now understand that at some time the periodic charge interval was changed to 10 years but I cannot find out when this happened and whether it was retrospective. Therefore I do not know which anniversaries are the relevant dates.
Could I please ask for advice on the following questions : -
!. What are the dates when liability for the periodic charge should have been assessed ? Was it 2016 and now 2026 ? Or was it 2011 and then again in 2021 ? Or something else ?
2. Is it my liability to contact HMRC now to bring up to date assessment for the periodic charges ? If so how do I do this please ?
3. Would it be better to do nothing at this time ?
Many thanks in anticipation for any help or advice.

[AGoodman]

I am not aware of the periodic charge anniversary ever being anything other than 10 years (certainly not since 1986 when inheritance tax was introduced). It is called the "ten-yearly charge" throughout the legislation and always has been: https://www.legislation.gov.uk/ukpga/1984/51/section/66

The first anniversary would have been 2011 and the second 2021.

IHT is self assessment so you should not expect HMRC to contact you. You are obliged to file a return unless it falls within the statutory exceptions.

Assuming the settlor had not made any other chargeable transfers in the 7 years prior to 2001, tax should only be payable if the value exceeds the nil rate band - that would have been £325,000 throughout. In general, the value was greater than 80% of the NRB (£260k), there is an obligation to file a return regardless.

You can bring it up to date by filing any required returns. You may be fine for 2011 but need to file a return for 2021 if the value was greater than £260k. The form is IHTd - they've been updated since 2011 but I doubt there is any particular problem using the current one - you could call and check with them.

[pdfx4]

Thanks very much for the reply which is very helpful. Not certain where I got the 15 year period from - although it was fixed in my brain as applying as at 2001. I realise now that it is in fact 10 years.
Many thanks.