Valuation of business (for inheritance tax planning)

[kryten]

OK, going through all the 'stuff you ought to do' at the moment and need to get a rough idea of what HMRC do when valuing a business to assess the IHT liability.

Our current accountant is really not sure on what valuation they'd use. We're not looking to sell so don't need to worry about that but just want to ensure that if the worst happens the kids aren't lumbered with a really big bill.

Any suggestions?

[wattsm666]

If it is a trading business then it should qualify for Business Property Relief and therefore be exempt from IHT.

Does this help

[kryten]

Hmm, maybe. Structure may be an issue with holding company and stuff but nothing we couldn't change if it was sensible to do so.

[ewenm]

Have you asked HMRC?

[wattsm666]

kryten said:

Hmm, maybe. Structure may be an issue with holding company and stuff but nothing we couldn't change if it was sensible to do so.

You need to take advice from your accountant. A holding company may not be an issue, all depends what other assets etc are in the group.