IHT reliefs and options
IHT reliefs and options
- 2003
- Farm Tax Brief 18(1) February 2003, 1-3(3) .
Examines inheritance tax (IHT) agricultural and business property relief which may be lost if the property is subject to an 'immediate binding contract for sale' under the Inheritance Tax Act 1984 ss113 and 124. However partnership agreements often contain provisions or give the option for the retiring or deceased partner to 'sell' their interest in the partnership to the surviving partner. Such options are not binding contracts for sale but by avoiding IHT it could lead to problems with gapital gains tax (CGT). Considers the issues raised by "Mansworth v Jelley" (CA [2002] STC 1013) regarding IHT and CGT.
BUSINESS PROPERTY RELIEFS
INHERITANCE TAX RELIEFS
INHERITANCE TAX ACT 1984 S113
INHERITANCE TAX ACT 1984 S124
MANSWORTH V JELLEY
CAPITAL GAINS TAX ACT 1992
BUSINESS PROPERTY RELIEFS
Examines inheritance tax (IHT) agricultural and business property relief which may be lost if the property is subject to an 'immediate binding contract for sale' under the Inheritance Tax Act 1984 ss113 and 124. However partnership agreements often contain provisions or give the option for the retiring or deceased partner to 'sell' their interest in the partnership to the surviving partner. Such options are not binding contracts for sale but by avoiding IHT it could lead to problems with gapital gains tax (CGT). Considers the issues raised by "Mansworth v Jelley" (CA [2002] STC 1013) regarding IHT and CGT.
BUSINESS PROPERTY RELIEFS
INHERITANCE TAX RELIEFS
INHERITANCE TAX ACT 1984 S113
INHERITANCE TAX ACT 1984 S124
MANSWORTH V JELLEY
CAPITAL GAINS TAX ACT 1992
BUSINESS PROPERTY RELIEFS