Commentary

I7.406 Credit for IHT charged

IHT, trusts and estates

I7.406 Credit for IHT charged

I7.406 Credit for IHT charged

Where a disposal of timber on which further IHT is chargeable1 is itself a chargeable transfer2, the value transferred3 by it is calculated as if the value of the trees or underwood had been reduced by the IHT chargeable by reference to the death4.

Example

C died in July Year 1 leaving a net estate of £1,750,000, which included qualifying woodlands worth £400,000. The land on which they stood was worth £100,000, thus the trees were worth £300,000. C left all of his estate to his son D, having made no chargeable transfers in his lifetime. D

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