Finance Act 1975

Value transferred on death

9 (1) In determining the value of a person's estate immediately before his death—

(a) changes in the value of his estate which have occurred by reason of the death and fall within sub-paragraph (2) below shall be taken into account as if they had occurred before the death; and

(b) allowance shall be made for reasonable funeral expenses; and

(c) where there is a liability to make payments or transfer assets under such a disposition as is mentioned in section 40 of this Act, the liability shall be computed as if the amount or value of the payments or assets were reduced by the chargeable portion thereof (as defined in that section); and

(d) an allowance against the value of property situated outside the United Kingdom shall be made for any expense incurred in administering or reallsing the property which is shown to be attributable to the situation of the property, but the allowance shall not exceed five per cent, of the value of the property.

(2) A change falls within this sub-paragraph if it is an addition to the property comprised in the estate or an increase or decrease of the value of any property so comprised; but the termination on the death of any interest or the passing of any interest by survivorship does not fall within this sub-paragraph.

(3) Part II of this Schedule shall apply with respect to the valuation of qualifying investments (as defined in that Part) which are comprised in a person's estate immediately before his death and are sold by the appropriate person (as so defined) within the period of twelve months immediately following the date of the death.