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Home / Simons-Taxes /IHT, trusts and estates /Part I8 Valuation /Division I8.3 Valuation of particular types of property /Valuing partnerships / I8.337 Valuing family partnerships for IHT
Commentary

I8.337 Valuing family partnerships for IHT

IHT, trusts and estates

The creation of partnerships and transfers of partners' interests give rise to special problems where families are involved. The main reasons are:

  1. Ìý

    (a)ÌýÌýÌýÌý There is more likely to be an element of bounty in the arrangements than is the case where the family relationship does not exist.

  2. Ìý

    (b)ÌýÌýÌýÌý Where husbands and wives are involved the related property rules distort the real rights of the individuals for valuation purposes.

  3. Ìý

    (c)ÌýÌýÌýÌý The exemption of gifts between spouses can give rise to valuation problems where third parties are involved.

  4. Ìý

    (d)ÌýÌýÌýÌý Failure to observe normal commercial practices because of the family relationships (for example non-payment

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