IHTM14011 - Basis of valuation:
summary
The general rule under IHTA84/S3 is that the value
transferred by a transfer of value (
IHTM04024) is the
- amount by which the value of the
transferor’s estate is reduced (the loss to the estate
principle) (
IHTM04054). See also
IHTM04093 and
IHTM04094 for the position on the
termination of a life interest during the life tenants
lifetime.
- but taking no account of any excluded
property (
IHTM04251) which ceases to form part of
the transferor’s estate as a result.
The loss does not depend only on the property owned by the
transferor. You must consider also other property in the
transferor’s estate, such as settled property (
IHTM04081) or related property (
IHTM09731).
