In determining the value transferred by a transfer of value, expenses incurred by the transferor in making the transfer (but not his liability for [F1inheritance tax])—
(a)shall, if borne by him, be left out of account;
(b)shall, if borne by a person benefiting from the transfer, be treated as reducing the value transferred.
Textual Amendments
F1 See Finance Act 1986 s. 100(1)and (2)—for any liability to tax arising on and after 25July 1986any reference in the legislation to capital transfer tax has effect as a reference to inheritance tax.