This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

Inheritance Tax Manual

Valuing the partnership interest: Sales

The price which an asset fetches when sold is usually a good indication of its open market value. This is the case whether it is a sale of the deceased’s partnership interest as a whole, or of particular assets, e.g. plant and machinery/stock.

However you should always investigate sales to relatives to ensure that they were at arm’s length. You should refer any freehold/leasehold property to the Valuation Office Agency (IHTM23002).

Note that sales to surviving partners may be below market value (IHTM25120).