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IHT reliefs and options

Series: Farm Tax Brief ; 18(1) February 2003, 1-3(3)Publication details: 2003Subject(s): Summary: 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.

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.