Inheritance Tax Act 1984 section 61

Ten-year anniversary

Section 61 defines what counts as a "ten-year anniversary" for the purposes of the inheritance tax charge on discretionary trusts and other relevant settled property.

• The ten-year anniversary of a settlement is the tenth anniversary of the date the settlement commenced, and every subsequent tenth anniversary thereafter.
• No date before 1 April 1983 can be a ten-year anniversary, which means that settlements created before that date have their first anniversary pushed forward accordingly.
• Where a settlement is treated as made under section 80 (initial interest of settlor or spouse or civil partner), the ten-year anniversaries follow the dates of the original settlement, not the deemed settlement.
• A special transitional rule applies where the first ten-year anniversary would have fallen in the year ending 31 March 1984 and a court-ordered event triggered a tax charge under Finance Act 1982 Part IV Chapter II — in that case, the first anniversary is treated as 1 April 1984, although later anniversaries are unaffected.