Valuation of property
Trusts and Inheritance Tax
Guidance
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 鈥榯ransferred鈥�. On the occasion of death, the whole of the deceased鈥檚 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:
- 鈥�
the first consideration is the standalone value of distinct items of property
- 鈥�
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, generative tax AI, and tax research, register for a free trial of Tolley+鈩�Related documents:
Related documents:
Popular Articles
Owner-Managed Businesses
SEIS and EIS 鈥� overview
SEIS and EIS 鈥� overviewThe seed enterprise investment scheme (SEIS) and enterprise investment scheme (EIS) are very similar schemes which offer substantial tax incentives to investors in companies which qualify. The tax incentives for SEIS and EIS investments are intended to encourage investment in
Value Added Tax
Exemption 鈥� overview 鈥� items exempt from VAT in the UK
Exemption 鈥� overview 鈥� items exempt from VAT in the UKVAT exemption: list of supplies exempt from UK VATThe goods or services that are exempt from VAT are listed under various group headings within VATA 1994, Sch 9, Pt II.It is important to remember that not all supplies that come within a heading
Value Added Tax
Holding companies 鈥� VAT status of activities
Holding companies 鈥� VAT status of activitiesThis guidance note examines how to determine the VAT status of a holding company鈥檚 activities. In particular, it looks at:鈥hen a holding company is or is not in business鈥f a holding company is in business, whether its activities are exempt or taxableThe
