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