Inheritance Tax Act 1984 section 111

Value of certain shares and securities

Section 111 deals with how shares and securities in a company are valued for business property relief purposes when the company belongs to a group that includes one or more companies whose business is mainly investment-based.

• Where a group includes a company whose business consists mainly of dealing in securities, land, or holding investments, that company is excluded from the group valuation for business property relief purposes.
• The shares or securities of the qualifying company are valued as though the investment-type company were not a member of the group at all.
• This exclusion does not apply if the investment-type company qualifies as a market maker in securities, since market makers are treated as carrying on a qualifying business.
• The exclusion also does not apply if the investment-type company's business consists mainly of holding land or buildings occupied by other group members that are themselves carrying on qualifying (non-investment) businesses.