There are 2 IHT charges when property passes into/out of a trust for inheritance tax
This must be paid every 10th anniversary by the trustees.
It is 6% of the value of the property every 10th anniversary.
For example, property passed into a trust in 2010 when it was valued at £1,000,000 and in 2020, it is valued at £1,500,000.
The principal charge will be 6% * £1,500,000 = £90,000.
This must be paid when the property leaves the trust.
For example, property passed into a trust in 2010 when it was valued at £1,000,000, the donor died in 2018 and the property will be passed on to the beneficiary in 2018 when it is valued at £1,200,000.
The exit charge will be 6% * £1,200,000 = £72,000.
This is all you need to know about these charges. You will not be asked to compute the them in your exam.