Relief under IHTA 1984, s. 131 is removed by s. 136 where the fall in value in property has resulted from a transfer or disposition by a close company within the charge under s. 94 or 98. It applies where a ‘relevant transaction’ has taken place, this being:

(1)a transfer of value by the company, or

(2)an alteration in the company's unquoted share or loan capital or in any rights attaching thereto,

which does not give rise to an adjustment in market value under any of s. 133–135. (The inheritance tax charge on close companies is dealt with in ¶603-700ff.)

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