More on partners and land

Further to my recent contribution published in Taxation a little bit more needs to be said about the inheritance tax analysis moving on from the debate as to whether or not a particular asset is indeed a partnership asset.

The last paragraph of my previous contribution focused on the capital gains tax position. It should be said that the same does not strictly apply to inheritance tax notwithstanding that particular assets may be allocated to various capital accounts in different ownership within the partnership.

The inheritance tax position on the death of a partner or on another chargeable transfer follows the general partnership rule: that a partner has a chose in action being an entitlement to part of the bundle of rights less liabilities in accordance with the partnership agreement.

That said however as I understand it HMRC Trusts and Estates will...