Inheritance Tax Act 1984 section 160

Market value

Section 160 establishes the general rule for determining the value of property for inheritance tax purposes, based on the open market value principle.

• The value of any property is the price it might reasonably be expected to fetch if sold on the open market at the relevant time.
• The price must not be reduced on the assumption that placing all of the property on the market simultaneously would depress its value.
• Restrictions on the actual sale of property do not prevent it from being valued under this open market principle.
• The valuation is based on the gross sale price, without deducting costs such as brokerage fees or stamp duty.