Valuation date and the value of benefits

Limited interest

If you inherit less than the full or absolute ownership of a gift or inheritance it is called a limited interest. You may inherit a limited interest for life, or for a specified time.

The taxable value of a limited interest is less than the taxable value of a full or absolute ownership or interest. The taxable value of a limited interest depends on:

  • your age and sex, in the case of a life interest
  • the number of years you have inherited for, if this is a specified time.

You will need the tables on the ‘Factors used for calculating value of limited interest’ page to calculate the taxable value for:

  • joint lives
  • the longer of two or more lives
  • an interest that is guaranteed for a specified time.

Next: Factors used for calculating value of limited interest