Taxation of Chargeable Gains Act 1992 Schedule 11 paragraph 9

Estate duty

Paragraph 9 of Schedule 11 establishes how the market value of an asset is determined for capital gains tax purposes where estate duty was charged on a death occurring after 30th March 1971.

• Where estate duty (including Northern Ireland estate duty) was chargeable on property passing on a death after 30th March 1971, and the principal value of an asset was ascertained for estate duty purposes, that principal value is treated as the market value for capital gains tax purposes at the date of death.
• This rule applies regardless of whether the principal value was established through formal proceedings or by other means.
• Where the principal value was reduced under tapering relief provisions for lifetime gifts (under section 35 of the Finance Act 1968 or its Northern Ireland equivalent), the value to be used is the principal value before that tapering reduction was applied.
• This rule is subject to the revaluation provisions in paragraph 4(3) of Schedule 11, which may override the estate duty valuation in certain circumstances.