Jurisdiction(s):
United Kingdom

Key definition

Relevant property definition

What does Relevant property mean? In UK trust practice, relevant property means trust assets that fall within the inheritance tax (IHT) “relevant property regime”, under which trustees may face ten‑yearly (periodic) and exit charges when property is distributed or appointments are made. The term is statutory and used consistently across England and Wales, Scotland and Northern Ireland under the Inheritance Tax Act 1984. Most discretionary trusts, and many lifetime trusts created on or after 22 March 2006, hold relevant property. Key exclusions include property in qualifying interest in possession trusts (for example, an immediate post‑death interest or a transitional serial interest), disabled person’s interests, bereaved minors’...

UK inheritance tax: calculating the periodic (ten-year) charge on relevant property trusts before 18 November 2015 [Archived]

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Practice notes

ARCHIVED:

Trustees of a Relevant property trust become liable to Inheritance tax (IHT) at each ten-year anniversary after the trust was set up. This levy is also described as:

the Principal charge
the periodic charge
the ten-year charge
the decennial charge

This Practice Note outlines how to calculate the tax due where the ten-year anniversary occurred before 18 November 2015 and the trust was established after 27 March 1974. Modifications to aspects of the calculation were introduced by the Finance (No 2) Act (F(No 2)A 2015). The approach now used for occasions of charge arising on or after 18 November 2015 is set out in Practice Note: Relevant property trusts—the principal (ten-year) charge. For what constitutes Relevant property and how to identify the date of the anniversary, see Practice Note: The meaning of relevant property.

The basis of the principal charge

The principal charge is assessed on the value of the relevant property held by the trustees immediately before a ten-year anniversary of the trust. Consequently, the initial task when dealing with a principal charge is to obtain a current valuation of the property within the trust...

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Web page updated on 22/05/2026

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