Commentary

I3.233 Notional liabilities

IHT, trusts and estates

I3.233 Notional liabilities

I3.233 Notional liabilities

Notional costs of sale are not deductible from the values of the assets in an estate, even if the asset is land subject to a trust for sale. This is because the value for IHT is the price that it might reasonably be expected to fetch if sold in the open market1 (see Division I8.2), which is the gross amount payable by a purchaser without deduction for any notional expenses incurred or commission charged on the hypothetical sale.

Similarly there is no allowance made, when valuing an asset, for the CGT that would be payable by the

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