Specialist guidance for reporting IHT on capital distributions from UK-relevant trusts

When capital leaves a UK-resident or UK-relevant trust, trustees may be liable for exit charges under the UK Inheritance Tax (IHT) regime. These charges apply to relevant property trusts and are calculated based on the value of assets leaving the trust, time since the last 10-year anniversary, and other key factors.

Our Expertise

At BCR, our team of experts offer support to ensure your IHT100 returns for exit charges are completed accurately, on time, and in full compliance with HMRC expectations.

Our Approach

Exit charges can arise on full or partial capital distributions, on appointment of assets to beneficiaries, or when assets cease to be part of the relevant property regime. We help trustees understand whether a charge applies, determine the correct value and timing, and submit the necessary documentation and payments. We support the following clients:

• Trustees of UK-resident trusts.
• Trustees of non-UK trusts with UK assets or connections.
• Channel Islands fiduciaries with UK-relevant structures.
• Family offices managing trust distributions.
• Solicitors and tax advisers requiring technical input on IHT reporting.

When does an exit charge apply

• When capital (money, property, or shares) is distributed to beneficiaries from a relevant property trust.
• When trust assets are reclassified or removed from the relevant property regime.
• Upon the winding up or partial dissolution of the trust.
• When beneficiaries become absolutely entitled to trust property.

Trustees are required to calculate and report the IHT due, and to ensure any tax is paid within six months from the end of the month in which the exit occurs. Failure to do so may result in penalties and interest.

Our Services

We can support with the following services:

• Assessment of whether a chargeable event has occurred
• Calculation of the IHT exit charge using HMRC-prescribed methods
• Preparation and submission of the IHT100 form and relevant schedules
• Liaison with valuers for open-market asset values
• Determination of applicable reliefs or exemptions
• Tracking of IHT rate history from the last 10-year anniversary
• Supporting payment of IHT and recordkeeping for compliance purposes
• Coordination with UK legal or tax advisers where appropriate

Our values in action

Excellence: Every IHT100 is prepared with care, accuracy, and completeness
Delivery: We manage deadlines and ensure filings are made promptly
Respect: We support trustees with integrity and protect client confidentiality
Elegance: Our advice is clear, reasoned, and adapted to your trust’s context‍

Why BCR Pro

We provide clear, compliant support with UK IHT exit charge reporting. Our expert team helps trustees navigate complex IHT rules, ensuring all IHT100 filings are accurate, timely, and fully aligned with HMRC requirements, minimising risk and preserving trust integrity.