ĄĻĖ¾»śĪēŅ¹ø£Ąū

Valuation of property

Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance

Valuation of property

Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance
imgtext

This guidance note discusses the principles of valuation that apply to the valuation of property for IHT purposes. It covers the general valuation rules, the loss to the donor principle and the related property rules in detail. It also discusses property where a special valuation rule applies including common types of property such as quoted and unquoted shares and land.

Where an inheritance tax (IHT) liability arises, it is computed by reference to the value of the property ā€˜transferredā€™. On the occasion of death, the whole of the deceasedā€™s estate is deemed to have been transferred immediately before death.

This is the aggregate of all the property owned at that time. There are two key considerations when determining the value on which tax is charged:

  1. ā€¢

    the first consideration is the standalone value of distinct items of property

  2. ā€¢

    the second consideration is whether the value of individual assets must be determined in relation to other assets

General valuation rules

The general principle is that property is valued for inheritance tax purposes

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+ā„¢
Powered by

Popular Articles

Incentives, awards and prizes

Incentives, awards and prizesIntroduction ā€• incentives, awards and prizesEmployers may use a variety of methods to reward and encourage employees in their work. These are commonly known as incentives, awards or prizes. For the purposes of this note, the term ā€˜awardā€™ will be used to cover all

14 Jul 2020 11:57 | Produced by Tolley Read more Read more

Payroll record keeping

Payroll record keepingUnder SI 2003/2682, reg 97, ā€œ...an employer must keep, for not less than 3 years after the end of the tax year to which they relate, all PAYE records which are not required to be sent to [HMRC]...ā€. Reasons for keeping the records include:ā€¢being able to calculate tax and

14 Jul 2020 12:52 | Produced by Tolley in association with Ian Holloway Read more Read more

Withholding tax

Withholding taxIntroductionUK tax must be withheld on UK payments including:ā€¢interestā€¢royaltiesā€¢rental incomeUK withholding tax may be reduced under the provisions of a double tax treaty (DTT). Prior to 1 June 2021, payments of interest and royalties made to EU resident associated companies were

14 Jul 2020 14:01 | Produced by Tolley Read more Read more