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Inheritance Tax

Volume 450: debated on Monday 16 October 2006

To ask the Chancellor of the Exchequer what factors were taken into account when deciding that the costs of selling a property should not be deducted from the value of the estate when calculating inheritance tax; and if he will make a statement. (94232)

The value of an estate for inheritance tax purposes is the open market value of the deceased’s assets, less that person’s own liabilities, at the date of their death. The costs of selling a property during the administration of an estate fall under the general rule that expenses which are not those of the deceased are not taken into account in the inheritance tax calculation.