IHTA84/S162B(1) applies where money was borrowed to acquire assets that qualify for business relief or to enhance or maintain the value of these assets. Where this is the case, the liability firstly reduces the value of the assets that qualify for relief, IHTA84/S162B(2). This is the case even if the liability is actually secured against other assets in view of the amendments to IHTA84/S162(4) (IHTM28392). Business relief (IHTM25001) is then given against the net value of the asset after deduction of the liability.

Where a liability has already been taken into account in arriving at the net value of the business under IHTA84/S110(b), this provision has no effect.

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