HMRC Inheritance Tax: Customer Guide
How do I value money owed to the deceased?
What kind of things should I include?
You should include as assets of the deceased’s estate all kinds of money and debts owed to the deceased at the date of death.
Examples are
- money which the deceased had lent to someone else and which had not been repaid at the date of death,
- money which the deceased had lent to trustees linked to a life insurance policy held in trust,
- money for which the deceased held a promissory note or 'IOU',
- money which the deceased had lent to someone and which is secured by a mortgage over property,
- money owing to the deceased from a director's loan account or current account with a company
What value should I use?
You should include the face value of the loan, after taking off any repayments that had been made.
