IHT, Partnership valuations and reliefs

[JJH1969]

Unfortunately my Dad recently passed away without a will and still in a partnership. I have to value the partnership at date of death and was planning on using the value of his capital account - will this suffice? He also held land separately on which his partnership operated. Can agricultural relief be claimed on this land or just 50% BPR?

[bip]

First of all, I would recommend professional help where there is a partnership and he died intestate.
Partnership agreements usually include clauses with regard to the deaths of partners and there are usually time limits before a default disposal is made.
These time limits can be shortly after death and can create other CGT tax problems if not dealt with via a partnership variation.

Whether you can use the capital value will depend on how the accounts have been put together. Any assets must include there current value and a lot of partnership accounts just use cost, which is not sufficient.

If the land is farmland farmed by the partnership, then APR is likely to apply as well.

I work with farming partnership estates everyday and they are complex claims which are reviewed in detail by HMRC, so I would urge you to seek professional guidance.

[JJH1969]

Thank you for the reply. There is no partnership agreement and the land isn't farmed it is horticultural

[AnthonyR]

On that basis I would second bip's suggestion of getting professional help as without a partnership agreement the partnership is dissolved on the death of any partner (s33 Partnership Act 1890), which could have serious implications on the other partner(s).