Meg Saksida looks at the special inheritance tax valuation rules for ‘related property’ and its potential effects on married couples (and civil partners).
The ‘related property’ rules are inheritance tax (IHT) anti-avoidance provisions that set out to stop taxpayers taking advantage of Aristotle’s old adage, “The whole is worth more than the sum of the parts”.
Aristotle was, of course, correct. It is true that the synergy of a ‘set’ or a ‘group of like assets’ often means a collection is worth more than the stand-alone value of the assets added together. For example:
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A complete set of an antique dining table and ten chairs is worth more than the individual stand-alone pieces combined.
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A case of wine is often worth more than the value together of six individual bottles.
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