»Ê¹ÚÌåÓýapp

Restrictions or a fetter on an individual’s freedom to dispose of certain assets can reduce the value of an estate. For example

• it may be agreed that a partnership interest shall on death pass to the continuing partners either without payment or at a favourable price, or
• a friend or relative might be granted an option to purchase a property for less than the market price.

IHTA84/S163 deals with this sort of situation by ignoring the restriction and valuing property on the normal valuation basis unless certain conditions are met. »Ê¹ÚÌåÓýappse instructions look at the general rule (IHTM09772) for ignoring a restriction. »Ê¹ÚÌåÓýappy also look in detail at how we apply the legislation to options to purchase (IHTM09777). Restrictions on rights to freely dispose of a partnership interest are dealt with at IHTM25120.