Inheritance Tax Asset Valuation

Inheritance tax asset valuation is an important part of managing the estate of a deceased individual.  The valuation can be divided into two broad phases – with the first being the valuation of all of the assets within the estate.  These can include:

  • Any fully-owned assets.
  • The appropriate portion of any shared assets, such as property of which the deceased was a joint tenant or tenant in common.
  • Gifts with reservation – gifts given away from which the deceased still benefited, such as giving property to children while continuing to live in it without paying rent.
  • Certain gifts and asset transfers during the prior seven years leading up to the death – there are many exemptions for such gifts which need to be carefully tracked.

At this point, there should be a total valuation of the potentially taxable assets.  The second phase involves the following deductions from the estate:

  • Repayment of remaining mortgages and loans.
  • Repayment of other remaining debts and bills.
  • Payment of funeral expenses.

Once this is deducted, the final sum should give you the inheritance tax asset valuation.  The first £312,000 of value is tax-free; the excess value over this threshold is subject to a 40% tax rate.

For information and advice on an inheritance tax asset valuation and other inheritance matters, contact professional UK financial consultants through our online enquiry form. They will offer you a free, no obligation first consultation.

Disclaimer: Every effort is made to keep the site accurate, however please bear in mind that tax rates are subject to change. If you require tax advice you should speak to a professional tax adviser.