IHT and drop in value of shares

IHT and drop in value of shares

Didn't find your answer?

Following a death, the estate includes shares which have dropped in value since the death and if sold within 12 months of death, this will reduce the IHT liability.
Does it matter whether the shares are sold by the executors or transferred to the beneficiary and then sold for this relief to be available?
Also, if the object of the exercise is to repurchase the shares immediately, does the normal 30 day CGT bed and breakfasting rule apply to IHT? Also, from a CGT perspective, is it preferable for the executors to sell and the beneficiary to repurchase as these are presumably different persons for CGT purposes and the B&B 30 day rule would not apply.
Thanks
Phil Leiwy

Replies (1)

Please login or register to join the discussion.

avatar
By User deleted
21st Nov 2007 14:03

IHT sale relief
The following link will take you to a brief summary of the relevant tax rules, which will help with most of the questions.
http://www.chiene.co.uk/pdf/ihtsharerelief.pdf

Thanks (0)