Commentary

I7.120B BPR and excepted assets examples

IHT, trusts and estates

I7.120B BPR and excepted assets examples

I7.120B BPR and excepted assets examples

Example 1—attribution of value to an excepted asset

Wilbur is a sole trader whose business consists of an investment property worth £300,000 (an excepted asset) and other business assets (eligible for 100% BPR) worth £800,000.

There is a mortgage of £100,000 against the property and other unsecured liabilities of £400,000.

In July 2018 Wilbur gifts his business (including the investment property) to his son Eric.

In order to establish the value transferred for IHT it is necessary to calculate the net value of the excepted asset by reducing its value by the mortgage and its proportion of the

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