Commentary

I7.405 Non-agricultural woodlands—basis and rate of IHT chargeable

IHT, trusts and estates

I7.405 Non-agricultural woodlands—basis and rate of IHT chargeable

I7.405 Non-agricultural woodlands—basis and rate of IHT chargeable

Where relief1 has been given and IHT is subsequently chargeable2 on a later disposal3 of trees or underwood, it is chargeable on the following amount:

  1.  

    •     if the disposal is a sale for full consideration in money or money's worth, on the net proceeds of the sale, and

  2.  

    •     in any other case, on the net value4, at the time of the disposal, of the trees or underwood

The IHT is chargeable at the rate 5 which it would have been chargeable on the death if that amount, and any amount on which IHT was previously chargeable6 in relation to the death, had been included in the value transferred on the death7, and the amount on which the IHT is chargeable had formed the highest part of that value8. Even where the lower rate of tax of IHT would have applied to the estate due to a qualifying legacy to charity (for deaths on or after 6 April 2012) (see I4.167), the lower rate of tax

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