Commentary

I3.241 Liabilities attributable to financing relievable property

IHT, trusts and estates

I3.241 Liabilities attributable to financing relievable property

Restrictions on deduction of liabilities—anti-avoidance

I3.241 Liabilities attributable to financing relievable property

In relation to transfers of value made or treated as made on or after 17 July 2013, IHTA 1984, s 162B imposes restrictions on the deduction of any liability incurred on or after 6 April 2013 to finance relievable property. Relievable property in this context means relevant business property entitled to BPR under IHTA 1984, s 1041, agricultural property entitled to APR under IHTA 1984, s 1162, or woodlands entitled to deferment of IHT charge under IHTA 1984, s 1253.

For further information on BPR, APR and woodlands relief see I7.102, I7.302 and I7.402

IHTA 1984, s 162B makes essentially the same provision in relation to all three categories of relievable property. Section 162B applies if there is a transfer of value made, or treated as made, on or after 17 July 2013, where the following conditions are met: the value transferred is wholly or partly attributable to relievable property, and the transferor at the time of the transfer has a liability incurred on or after 6 April 2013 which is attributable wholly or partly to financing (directly or indirectly) the acquisition of the relievable property, or the maintenance or enhancement of its value.

To the extent that the liability is so attributable it is, so far as possible, to be taken to reduce the value attributable to that property before its value is treated as reduced or left out of account by virtue of the relief. This

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial