What is the maximum periodic charge for inheritance tax on relevant property in a discretionary trust on each ten-year anniversary?
Answer and explanation
Correct answer: C. 6 percent
- Step 1: The ten-year anniversary charge is a maximum of 6 percent of the value above the nil rate band.
- Step 2: The exact rate is based on the value and the settlor's history.
Answer
6 percent.
Why not the others: The other percentages are not the maximum periodic charge.
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