Transfer of Value – Quoted Shares

Transfer of Value – Quoted Shares

When the transfer of value is calculated for quoted shares for Inheritance Tax purposes, special rules apply.

The TRANSFER OF VALUE is calculated as the LOWER OF:

  • The 1/4 UP METHOD: The bid price + 1/4 x (The spread between the bid and offer)
  • The AVERAGE METHOD: (Highest trade + Lowest trade)/2

Unit Trusts

The TRANSFER OF VALUE for a UNIT TRUST is taken to be the BID PRICE for IHT purposes.