Carol Howe Senior Tax Manager Hillier Hopkins LLP looks at the capital gains tax consequences of the interaction of related property values and probate value
This article is in the form of a case study highlighting the difficulties that may arise when shares have been valued for inheritance tax purposes on a related property basis and are subsequently sold by the beneficiary. Later on I will change the scenario to demonstrate that the related property rules can work to the taxpayer's advantage.
Although the topic primarily concerns values for probate the implications are far reaching and need to be appreciated by anyone concerned with companies as well as estate planners.
Many private trading companies will typically have the following share structure:
...
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Carol Howe Senior Tax Manager Hillier Hopkins LLP looks at the capital gains tax consequences of the interaction of related property values and probate value
This article is in the form of a case study highlighting the difficulties that may arise when shares have been valued for inheritance tax purposes on a related property basis and are subsequently sold by the beneficiary. Later on I will change the scenario to demonstrate that the related property rules can work to the taxpayer's advantage.
Although the topic primarily concerns values for probate the implications are far reaching and need to be appreciated by anyone concerned with companies as well as estate planners.
Many private trading companies will typically have the following share structure:
...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
.jpg?sfvrsn=335a554c_0 "300 x 250 (MPU)")