Lifetime transfers: basis of valuation: summary
The general rule under IHTA84/S3 is that the value transferred by a transfer of value (IHTM04024) is the:
- amount by which the value of the transferor’s estate is reduced (the loss to the estate principle) (IHTM04054). (See also IHTM04093 and IHTM04094 for the position when a life interest comes to an end during the life tenant’s lifetime.)
- but taking no account of any excluded property (IHTM04251) which is no longer part of the transferor’s estate as a result of that disposition.