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Valuing property for IHT

The general valuation rules for IHT are set out in the Valuation of property guidance note.

Deduction of liabilities and property qualifying for BPR

There are specific rules for the deduction of liabilities where the liability was incurred to acquire, enhance or maintain relevant business property. The rules for the deduction of liabilities are set out in the BPR, APR, woodlands relief and the deduction of debt guidance note.

The value of a shareholding

Where the relevant business property is a holding of shares then these are valued in the normal way using normal IHT valuation principles as set out in the Valuation of property guidance note. Different methods of valuation could be used such as:

1. •

   net assets basis

2. •

   multiple of earnings basis

3. •

   discounted cash flow

4. •

   industry specific method such as a multiple of fee income

Further information on the methods