Valuations

Question 1

what is fall in value relief?

Answer 1

• reduce the chargeable amount of the gift on the death tax on lifetime transfer computation.
• asset must still be owned by donee at time of death or sold at arms length.
• does not apply to plant, machinery or wasting chattels.

Question 2

when would you withdraw the RNRB?

Answer 2

if death estate exceeds £2m, we reduc eby £1 for every £2m so 350k extra would reduce 175k band to 0

Question 3

what do we shares and securities at?

Answer 3

lower of the quarter up and the average method.

1/4 up= lower price + 1/4 (hp-lp_

average= hp+lp/2

Question 4

what is the related property formula?

Answer 4

formula A/A+B where
A is the value of the donor’s assets and B is the value of the related party’s assets. Where we are
looking at shares A means the number of shares held by the donor and B means the number of shares
held by the related party