IHTM14011 - Lifetime transfers: basis of valuation: summary

The general rule under IHTA84/S3 is that the value transferred by a transfer of value (IHTM04024) is the:

  • amount by which the value of the transferor鈥檚 estate is reduced (the loss to the estate principle) (IHTM04054). (See also IHTM04093 and IHTM04094 for the position when a life interest comes to an end during the life tenant鈥檚 lifetime.)
  • but taking no account of any excluded property (IHTM04251) which is no longer part of the transferor鈥檚 estate as a result of that disposition.

To work out the loss to the transferor鈥檚 estate you must also take into account other property in the transferor鈥檚 estate, such as settled property (IHTM04081) and related property (IHTM09731).