Inheritance tax
The rates applicable to gifts and inheritances are:
Threshold amount: Nil
The balance: 33% (since 6 December 2012).
Discretionary trust tax
Assets placed in discretionary trusts are subject to:
(a) A once-off charge of 6%, which is due within four months of the valuation date (s 18).
(b) An annual charge of 1%, which is due on 31 December each year, and payable four months later each year during the trust’s lifetime (s 23).