What ten-year rate?

A discretionary trust has been subject to the first and second ten-year charges under IHTA 1984 s 64. In both cases the rate was nil because the trust property comprises a farm and agricultural property relief (APR) brings the value down to nil.

However the trustees have now obtained planning permission on the farmhouse and buildings which will increase the value of the assets by about £1 million. This value is not agricultural value and so will not be eligible for APR.

We are planning to distribute the cash after the buildings have been sold to a developer. It has been four years since the last ten-year charge.

IHTA 1984 s 69 states that the rate to use on the exit of property between ten-year charges is the rate at the last ten-year charge...