IHTM09072 | Negotiating a settlement: examples of negotiating situations

From HM Revenue & Customs · Inheritance Tax Manual

These are some of the situations where a negotiated settlement may be appropriate

  • valuing an asset which is not dealt with by a specialist valuer

  • the allowable deduction in respect of a debt that is claimed to be due to the relative of the deceased ()

  • what constitutes reasonable funeral expenses ()

  • the valuation of any lifetime transfer resulting from a guarantee debt ()

  • the amount allowable in respect of a guarantee debt where full reimbursement is not expected ()

  • the deduction allowed for foreign administration expenses () under where the 5% limit does not apply

  • what the deceased provided in respect of a joint account ()

  • the extent to which withdrawals from a joint account () give rise to lifetime transfers

  • the availability of business relief on bank or building society accounts ()

  • the discount for occupation of the deceased’s property ()

  • the extent to which a transfer was intended to confer gratuitous benefit

  • the extent to which a normal expenditure out of income () claim is allowable

  • the application of equitable estoppel

  • the value of a future () or contingent liability () not dealt with by the Actuarial Team

  • any case where the facts are uncertain and are impossible to establish.

This list is not exhaustive.