IHTM09701 - Valuation: introduction

Inheritance tax is charged by reference to the value transferred by a chargeable transfer ( IHTM04021). The way that we go about valuing assets is therefore fundamental to the charge. The general rule is that the value of any asset is its ‘open market value’ ( IHTM09703). However, some specific assets ( IHTM09702) need special attention and the IHT legislation, as interpreted by case law, contains other rules that tell you

• when you should value items separately ( IHTM09715) and when you should bring assets together ( IHTM09712) for valuation purposes
• what to do if there is property ( IHTM04030) in the deceased’s or transferor’s estate that is related to property ( IHTM09731) in a spouse’s/civil partners ( IHTM11032) estate or the property of a charity, and
• how to value assets when there are restrictions on the freedom to dispose ( IHTM09771) of property.

One of the most important features of IHT is the ‘estate’ ( IHTM04029) concept, which means that we must bring together ( IHTM09712) different parts of the same property owned by different parts of an estate.