Hello Aweb, long time lurker but first time poster!
If I have the position whereby H & W own a company 50/50 and W would like to settle 26 shares into trust, resulting in the joint 74% holding being worth much less over all due to the inability to block a special resolution. Would the diminution in value to H's estate be exposed to IHT (on the basis that 50/74 would be worth less than 50/100) due to the related property rules?
I have read Ray and McLaughlin's Practical IHT planning which seems to conclude that H's diminution would have no exposure to IHT, albeit I am struggling to satisfy myself that this is the case. Can anyway offer some guidance on this? Perhaps I am missing something relatively straightforward here, as I confess my previous exeperiences with IHT have been cursory rather than in the detail.