Key points
- Additions must be included in their entirety when calculating the value of the trust for exit or ten-yearly charge percentage.
- The actual percentage is the legislative percentage for existing property.
- There are two ways of making the calculation.
Relevant property trust calculations can be tricky. Entry charges exit charges and periodic charges are all required to be calculated but none are more complicated than the additions calculations. In accounting for additions to a settlement whether calculating either the exit charge or the periodic charge any additions up to the exit (or during the period leading to the ten-yearly charge) need to be considered separately to the original trust property. This is because the added property has not been in the settlement for the entire time the tax charge is being charged over.
The method employed for dealing with additions can sometimes be difficult...