Part 2: Inheritance Tax Section 11 and Schedule 1: Calculation of rate of inheritance tax on settled property. Background note
The value of property held in most forms of trust is subject to IHT at 6% every ten years on the amount above the nil rate band (currently £325,000); and a proportionate "exit" charge when the value of the property leaves the trust between ten-year anniversaries.
	Where more than one trust is created on the same day by the same person, they are "related settlements" and the value settled on that day is aggregated when determining the rate at which tax is charged. The policy will reform the inheritance tax treatment of relevant property trusts and make the tax system fairer by removing the advantage that enables individuals to avoid IHT through the use of multiple trusts.
	This section and Schedule is related to three others in this Act which make changes to the relevant property trust legislation. The other sections are: 12 - Exemption from tenyearly charge for heritage property, 13- Settlements with initial interest in possession and 14 Distributions etc. from property settled by will.