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IHTM04103 | Settled property: charges on temporary charitable trusts

From HM Revenue & Customs · Inheritance Tax Manual

Settled property which for a limited period, however defined, can be applied only for charitable purposes is excluded from the ten-yearly and proportionate charges.

But tax is charged when

  • property ceases to be held for charitable purposes, or

  • the trustees make a disposition () which reduces the value of the property so held, .

Any application of the property for charitable purposes does not give rise to a charge.