transfer of value

transfer of value
a disposition made by a person (the transferor) as a result of which the value of his estate immediately after the disposition is less than it would be but for the disposition, and the amount by which it is less is the value transferred. This definition is for inheritance tax purposes where tax is charged on the loss to an estate resulting from a transfer of value. The definition is found in the Inheritance Tax Act 1984.
The value transferred is usually the value of the property transferred, but this is not always so; for example, where A owned 51 per cent of the shares in a company and gave away 5 per cent, the loss to his estate would be greater (because of the consequent loss of control of the company) than the value of the 5 per cent transferred.

Collins dictionary of law. . 2001.


transfer of value
England, Wales
A technical term used in the Inheritance Tax Act 1984 to describe gifts and other voluntary dispositions of property from one person to another.
inheritance tax (IHT) is charged on "transfers of value", which can occur during lifetime (for example, a gift from one individual to another) or on death.
A transfer of value can be a chargeable transfer (chargeable transfer of value), or an exempt transfer (exempt transfer of value). If a transfer is chargeable, there may be reliefs available to reduce the amount of IHT payable.
Related terms
exempt transfer of value (for inheritance tax)

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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