An elderly acquaintance is considering gifting some shares in the family business to his children.

There is significant capital gains accrued on the shares (which said relative has held for decades), but this can be deferred using Gift Holdover Relief (see also here; the shares do qualify).

However, it's unclear to me how this relief interacts with the "7 year rule" and taper relief on Potentially Exempt Transfers/lifetime gifts. If my acquaintance dies within the next seven years, what would the value of the shares be for the purposes of working out the "Chargeable Consideration" to be added back into the value of the estate for Inheritance Tax purposes?

(Before anyone jumps in to point it out, yes my acquaintance is aware that simply retaining the shares to benefit from the CGT "uplift on death" is another option which should be considered)

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