Commentary

I8.340 Discounting the valuation

IHT, trusts and estates

I8.340 Discounting the valuation

I8.340 Discounting the valuation

Discounts have in the past been taken from the proportionate part of the overall value of the partnership assets in arriving at the value of a transferor's interest in a partnership, and have varied according to the circumstances. However, there is now some doubt as to whether discounts are allowed. HMRC state1 that the previous practice of allowing a discount for the costs of sale is effectively overturned by the decision in Gray v IRC2. However, should a discount still be permitted, the amount is calculated on normal valuation principles and should encompass such matters as restricted rights over property; for

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