Valuation of business (for inheritance tax planning)
Valuation of business (for inheritance tax planning)
Author
Discussion

kryten

Original Poster:

597 posts

256 months

Thursday 14th May 2009
quotequote all
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

742 posts

296 months

Thursday 14th May 2009
quotequote all
If it is a trading business then it should qualify for Business Property Relief and therefore be exempt from IHT.

Does this help

kryten

Original Poster:

597 posts

256 months

Thursday 14th May 2009
quotequote all

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

28,506 posts

276 months

Thursday 14th May 2009
quotequote all
Have you asked HMRC?

wattsm666

742 posts

296 months

Thursday 14th May 2009
quotequote all
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.