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Readers’ forum: IHT and the ten year anniversary charge

16 May 2022
Issue: 4840 / Categories: Forum & Feedback
IHT and the ten year anniversary charge.

Overseas trusts

My client has two unrelated separate overseas trusts settled by unconnected non-UK domiciled individuals. One trust has a tenth anniversary and the other has a twentieth anniversary coming up.

Both have a similar setup with overseas bank accounts overseas assets and liabilities and ownership of overseas registered companies. In trust 1 company A contains no UK residential property but company B’s value is derived from a loan given to a beneficiary of the trust which was then used to purchase a UK residential property. In trust 2 company C also contains a UK residential property and some overseas assets and liabilities that do not fall under UK inheritance tax.

Does the change in inheritance tax rules in 2017 mean that company B in trust 1 falls under the ten-year anniversary rules as the company derives its value from a loan in connection with a...

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