Commentary

I6.129 Close companies and liability for IHT

IHT, trusts and estates

I6.129 Close companies and liability for IHT

I6.129 Close companies and liability for IHT

Liability for any IHT due in respect of a transfer of value made by a close company falls, primarily, on that company1. Payment of the tax by the company, being in satisfaction of its statutory obligations, clearly does not constitute a transfer of value even though the participators, because of differing marginal tax rates, may have 'contributed' to the overall liability in proportions different to their relative interests in the company. For liability for IHT see Division I10.1

If, however, the company fails to pay the whole, or any part, of that tax by the due date (see I10.114), liability for that amount falls

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