A future liability must be discounted1, where appropriate, in order for its present value to be ascertained2. This is subject to an exception for any IHT payable by the transferor on an immediately chargeable transfer, which is not subject to any discount3 — see I3.523. It should also be remembered that a liability is not deducted at all if or to the extent that it is not incurred for consideration (see I3.231).
If a deductible future liability is subject to a contingency at the date of valuation, the debt has to be discounted for the contingent element in addition to the delay in payment. The amount of the discount
To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to Tolley+™ Research or register for a free trial
Web page updated on 17 Mar 2025 16:51