Maintenance funds receive favourable treatment and are not subject to the ten-year periodic charge1 on relevant property trusts. They escape the charge by virtue of the fact that the property they comprise is not 'relevant property' — see I5.303. When the exempt trust status of any part of the fund ends there will be an IHT charge2 unless a specific exemption3 applies.
Exemptions from charge
Tax is not chargeable in the following circumstances:
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(a)ÌýÌýÌýÌý When property is applied for the purpose of maintaining etc the heritage property it supports4.
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(b)ÌýÌýÌýÌý If the property becomes comprised in another exempt maintenance fund within 30 days of leaving the old one. The period is extended to two years where the occasion of the charge is the death of the settlor5.
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The exemption does not apply, however, if the person who gives the property to the new fund had acquired it for consideration in money or money's worth (the 'purchase' rule)6. There is also an 'excess
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Web page updated on 17 Mar 2025 16:34