IHTM25083 - Valuing the business: Adjusting the capital account


When you have finalised the values of the assets and liabilities in the balance sheet and, if appropriate, the value of any additional assets or liabilities, the next step is to adjust the capital account which reflects the value of the deceased/ transferor’s interest for IHT.

You should work out the net increase (or decrease) in the balance sheet values and adjust the capital account by this amount.