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HMRC internal manual

Inheritance Tax Manual

From
HM Revenue & Customs
Updated
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Structure of the charge: what is the value transferred?

The value transferred by a chargeable transfer is calculated in a different way depending on the charge to IHT

  • for lifetime transfers, the value transferred is the amount of the loss to the transfer’s estate, (IHTM04054)
  • on death, the value transferred is equal to the value of the deceased’s estate, immediately before death, (IHTM04044)
  • for a lifetime transfer of settled property in which an interest in possession subsists, the value transferred is equal to the value of the property in which the interest subsisted, (IHTM04093)
  • for discretionary trusts, (IHTM04097) the value transferred depends of the nature of the claim to tax.