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HMRC internal manual

Inheritance Tax Manual

Ascertained values: when is a value not ‘ascertained’?

A value is not ‘ascertained’ when property is exempt from IHT or fully relievable from charge, for example, by agricultural or business relief. You should make a point of following the instructions at IHTM24161 to ensure that taxpayers are aware that the value they have offered for relievable property is not ascertained for capital gains tax purposes.

If an asset is wholly exempt or relieved form IHT, neither we nor the taxpayer can require the value to be ascertained for CGT purposes. If the taxpayer asks you to agree a value in such a case you should explain that you have no need to do so and cannot be required to do this as there is no immediate liability to IHT. If the taxpayer persists, you should refer the matter to TG (via TSS if you are in PC&S.

Where there is no tax to pay because the chargeable value of an estate is below the threshold, the fact that we accept this to be the case does not mean that we have implicitly accepted the value of any property comprised in the estate and no value has been ascertained for CGT purposes. Even if the VOA (IHTM23002) has provided an ‘as returned’ (IHTM23144) value, as no tax has been paid, the value is not ascertained.

If the taxpayer seeks to increase the value of a property, for example, by asking us to accept the sale price, but there is still no tax to pay, you should adopt the approach given above for exempt or relieved assets.