As regards settlements made on or after 27 March 1974, the following procedure is followed to calculate the first ten-year charge, where there have been no additions to the trust (see further below).

The steps in the calculation are:

Step 1

Work out the value of a hypothetical transfer which is the aggregate of:

(a)the value of the relevant property in the settlement immediately before (i.e. day before) the anniversary date (including unaccumulated income received more than five years before the charge date);

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