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A specific gift (IHTM26011) of relievable property is a straightforward gift under which the beneficiary receives the relievable property, such as ‘my interest in the XYZ partnership to Ben absolutely�. There are separate instructions dealing with gifts that are not straightforward (IHTM26107).

The value of a straightforward gift of relievable property is the value of that property after relief.

Example

• John’s estate passes by Will:£600,000 including unlisted shares worth £200,000.
• Those shares qualify for business relief (IHTM25131) at 100%.
• Specific gift of unlisted shares to a child.
• Residue equally to spouse and child.

Applying the stages (IHTM26104) for calculating the chargeable estate

Stage 1

The value transferred after business relief is £400,000.

Stage 2

There is a specific gift of relievable property - the unlisted shares. This gift is taken at its value after relief, which is nil.

Stage 3

No action necessary.

Stage 4

There is no value to gross up (IHTM26121).

Stage 5

Calculate the residue using the reduced values.

Value transferred of £400,000 less specific gift (nil) = £400,000 (residue).

Stage 6

The chargeable estate is half the residue = £200,000.