The Inheritance Tax Act 1984, s. 187(3) applies where the relief has been affected by s. 180 (¶628-150 supra), so that relief has been reduced by a fraction which is referred to in s. 187(3) as the relevant proportion. (This definition of ‘relevant proportion’ is found in s. 178(1)). If the value on death exceeds the sale price, the value attributed to that investment is the sale value plus the relevant proportion of the difference between the value on death and the sale price. If, on the other hand, the sale price exceeds the value on death, the value attributed is the sale value less the relevant proportion of the difference between the value on death and the sale price.

Need help? Get subscribed!

To subscribe to this content, simply call 0800 231 5199

We can create a package that’s catered to your individual needs.

Or book a demo to see this product in action.