IHTM44043 - Pre-owned assets: exemptions: property in a person바카라 사이트™s estate that derives its value from the relevant property
The exemption in FA04/Sch15/Para 11(1) (IHTM44041) also applies to relevant property where a person바카라 사이트™s estate includes property which derives its value from that property, FA04/Sch15/Para11(2). Where the value of the derivative property, so far as is attributable to the relevant property, is substantially less than the value of the relevant property
- the appropriate rental value of the relevant land, or
- the appropriate amount in respect of the chattel, or
- the chargeable amount in relation to the relevant intangible property
must be reduced by such proportion as is reasonable to take account of the inclusion of the derivative property in the person바카라 사이트™s estate. You should normally regard the value of the derivative property as being 바카라 사이트˜substantially less바카라 사이트™ than that of the relevant property where the difference in value is more than 20%. Any case where you consider the exemption should apply (or not apply) in full and there is a reduction of more (or less) than 20% should be referred to Technical.
Example
Bruce transfers his house to a company wholly owned by him. The value of the shares in the company which are included in Bruce바카라 사이트™s estate is fully derived from the value of the house and so the exemption in FA04/Sch15/Para 11(1) applies.
But if Bruce gave the house to a company which was owned 25% by his civil partner then the value of the 75% shares he holds would be 바카라 사이트˜substantially less바카라 사이트™ than the value of the house, so although the POA charge would apply, the appropriate rental value should be reduced by a reasonable proportion, perhaps 75%, to reflect the value of the shares in Bruce바카라 사이트™s estate.