IHTM27264 | Foreign property: specific British Government Securities: exempt securities as partnership assets

Very occasionally the assets of a partnership may include exempt securities which will normally constitute “excepted assets” (see IHTA84/S112) so they will not qualify for Business Relief. In this situation a partner’s transfer of their interest in the partnership will be excluded property:

• to the extent that it is attributable to the exempt securities (IHTM27241)

• and only if it satisfies the conditions specified for the security

You should calculate the amount to be excluded as follows:

(Value of exempt securities ÷ Total value of partnership) × Value of transferor’s partnership interest