Capital account is negative - how to treat this for IHT

[AK2021]

The deceased was a partner in a farming business.
The most recent accounts show a negative capital account against his name. ( don't know why - negative CA is expressly prohibited in the partnership agreement)
The will gifts "the entire interest in the partnership" to his son, also a partner.
My assumption is that, it will be transferred as a negative amount in the next years accounts.

The question is how should this be accounted for in IHT 400.
Effectively its a liability, but if its not going to actually be repaid should it be ignored?

There will be very little cash in the estate, although substantial assets. mostly bequeathed to the son, plus some pecuniary gifts to daughters.
So repaying the capital account might just about be possible/possibly not, but would definitely cause abatement of the pecuniary gifts.

[pawncob]

For IHT it's a liability and should be shown as such.
The negative Capital account should be deducted from the remaining partner's account, thus satisfying the debt.

[AGoodman]

You (or your advisors) may just want to review s.175A of the Inheritance Tax Act 1984 which governs the deductibility of estate liabilities which are not repaid. It may not be a problem but worth checking.