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HMRC internal manual

Inheritance Tax Manual

HM Revenue & Customs
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Quantifying increase to deceased's estate: what values to use


Use the values agreed for the earlier chargeable transfer (IHTM04027). Therefore, if the value transferred by the first chargeable transfer is reduced by business relief (IHTM25131) or agricultural relief (IHTM24001) the increase is based on the value after reduction by the relief. Where the value of the asset transferred was reduced by the interaction rules, using the appropriate fraction under IHTA84/S39A(3) (IHTM26102), then the increase is based on the reduced value.

Ignore any costs and expenses payable on the earlier transfer. For example, if the earlier transfer was on death and your deceased took the residue, ignore the costs of administering the earlier estate when making your calculation.