»Ê¹ÚÌåÓýapp

In valuing legal rights (IHTM12221) it is necessary to distinguish between

• a true valuation under the general law (IHTM10301) of these rights as an asset in the hands of (or due to) a beneficiary, or what these rights are actually worth to that person at any given date, and
• a valuation made for IHT purposes on the death of the person whose estate is subject to the legal rights claim.

»Ê¹ÚÌåÓýapp valuation for IHT purposes is artificial in that it does not reflect the actual value of the legal rights to the person entitled to these rights. It is a consequence of the IHT legislation that is intended to establish fairly to what extent an estate is exempt from tax and to what extent it is chargeable to tax.