Special valuation rules
In this lesson, you'll learn the special valuation rules that apply to specific assets under inheritance tax (IHT) law. These rules differ from standard valuations and are essential for calculating accurate IHT liabilities on quoted shares, unit trusts, and overseas assets.
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In this lesson
- 0:00 Special valuation rules for IHT
- 0:16 Quoted shares valuation method
- 1:47 Unit trusts and overseas assets
About this lesson
You'll discover how quoted shares are valued using the "quarter up" method—comparing a calculated figure based on the day's highest and lowest prices to the average of marked bargains, then using the lower value. The lesson walks through a worked example showing how to apply this formula step by step. You'll also learn that unit trusts are always valued at bid price (the lower quoted price), and that overseas assets must be converted using the exchange rate that produces the lowest value, with potential double taxation relief available. These rules apply exclusively to IHT purposes and differ from capital gains tax rules, so understanding when and how to apply them is crucial for accurate estate valuations and exam success.
Duration: 3m
Transcript
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