Ihtm34220 - restrictions on relief: part holdings comprised in the deceased’s estate - hmrc internal manual

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IHTM34220 - RESTRICTIONS ON RELIEF: PART HOLDINGS COMPRISED IN THE DECEASED’S ESTATE This restriction applies if only part of the holding is included in the deceased’s estate.  The loss on


sale, restricted as necessary, is deducted from the value of the entirety of the investments. The resulting figure is then apportioned according to the values of: * the part of the holding


comprised in the estate, and * the entirety of that holding, IHTA84/S186. EXAMPLE Aries trust fund comprises 1,000 Black plc shares, valued immediately before death at £4,000.  Of this 250


shares with a value of £1,000 is comprised in the deceased’s estate. Two months after the death the holding is sold for £3,000.  The overall loss on sale is £1,000 and the value of the


entirety of the holding after relief becomes £3,000. The value of that part of the holding comprised in the estate is revised to (1,000 ÷ 4,000) x £3,000 = £750 Previous page Next page Print


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