Valuation date and the value of benefits

What is the valuation date?

The valuation date is the date on which the market value of a gift or inheritance is established. The market value is the best price you would get if you sold the item on the open market.

The valuation date:

  • for a gift is the date you received it
  • for an inheritance is the earliest of these dates:
    • the date the executor or administrator can receive the inheritance to give it to you
    • the date the executor or administrator actually receives the inheritance to give it to you
    • the date the executor or administrator gives the inheritance to you.
  • is the date of death if:
    • someone gives you a gift in anticipation of their death
    • a power of revocation has not been used
    • the property passes by survivorship or under a trust.

If there is no will, the valuation date for an inheritance is normally the date of the Grant of Representation. The Grant of Representation is known as:

  • Grant of Probate when there is a will
  • Letters of Administration when there is no will.

Note

The tax free  group thresholds and rates of tax that apply when you receive:
- a gift are determined by the date of the gift (and not the valuation date)
- an inheritance are determined by the date of death (and not the valuation date).

Next: Limited interest