SVM108130 - Inheritance Tax: Sub-Threshold Cases - Relevant Property Trusts

Where the value of the shares will not take the total chargeable value over the tax threshold, and the tax claim relates to a periodic charge or ten-year anniversary charge, the valuer should notify the IHT caseworker of the position and enquire whether negotiations may be discontinued.

See also chapter at SVM108060 concerning Risk Assessment procedures for 10 year Relevant Property Trust Charges.

Sub-threshold cases involving proportionate charges, however, must still be fully considered where there is a retained shareholding in the company or there is information held by SAV of other assets retained in the settlement.

If, however, there is no mention of retained assets, the valuer should notify the IHT caseworker and enquire whether there are other assets retained in the settlement and, if not, whether negotiations may be closed on the sub threshold basis.

Additional Guidance: SVM150000