Anothe IHT valuation
vigman
Posts: 1,377 Forumite
Hi
My family has been involved in settling a complex estate for over a year now.
After not accepting the first valuation of land and properties although the chartered valuer was approved, a second valuation was demanded. More IHT was paid.
Properties have been sold to pay this
We now have a demand for a third valuation!
Two issues with this. First is that they want to revalue and visit a property already sold and occupied by new owners. Can they do this or not just accept the value was what was paid for the house?
Second issue. One piece of land is a garden, in fact an orchard. HMRC insist this is valued as building land although it is off any building line and no one has ever applied to build on it. This makes the difference between a value of say £200,000 and £20,000 and 40% tax on that!
Has anyone else experienced multiple valuations and/or the definition of land for IHT purposes?
TIA
Vigman
My family has been involved in settling a complex estate for over a year now.
After not accepting the first valuation of land and properties although the chartered valuer was approved, a second valuation was demanded. More IHT was paid.
Properties have been sold to pay this
We now have a demand for a third valuation!
Two issues with this. First is that they want to revalue and visit a property already sold and occupied by new owners. Can they do this or not just accept the value was what was paid for the house?
Second issue. One piece of land is a garden, in fact an orchard. HMRC insist this is valued as building land although it is off any building line and no one has ever applied to build on it. This makes the difference between a value of say £200,000 and £20,000 and 40% tax on that!
Has anyone else experienced multiple valuations and/or the definition of land for IHT purposes?
TIA
Vigman
Any information given in my posts or replies is intended to be of interest and/or help to members of the forum. I cannot guarantee that this is accurate or up to date.
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Comments
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This is exactly why you employ a professional value. Nobody on here is in a better position than them to deal with the matter. It is the valuer's job to negotiate with the District Valuer/HMR&C and establish a mutually acceptable answer. Unless the is genuine potential to actually developed the land it is hard to see how the DV can insist. As for visiting a property already sold surely the value would be close to the probate value. I am unsure what powers the DV have in such a situation but what does your valuer say about it?Hi
My family has been involved in settling a complex estate for over a year now.
After not accepting the first valuation of land and properties although the chartered valuer was approved, a second valuation was demanded. More IHT was paid.
Properties have been sold to pay this
We now have a demand for a third valuation!
Two issues with this. First is that they want to revalue and visit a property already sold and occupied by new owners. Can they do this or not just accept the value was what was paid for the house?
Second issue. One piece of land is a garden, in fact an orchard. HMRC insist this is valued as building land although it is off any building line and no one has ever applied to build on it. This makes the difference between a value of say £200,000 and £20,000 and 40% tax on that!
Has anyone else experienced multiple valuations and/or the definition of land for IHT purposes?
TIA
Vigman0 -
Yorkshireman99 wrote: »This is exactly why you employ a professional value. Nobody on here is in a better position than them to deal with the matter. It is the valuer's job to negotiate with the District Valuer/HMR&C and establish a mutually acceptable answer. Unless the is genuine potential to actually developed the land it is hard to see how the DV can insist. As for visiting a property already sold surely the value would be close to the probate value. I am unsure what powers the DV have in such a situation but what does your valuer say about it?
Thanks for the quick reply
The first two valuers were highly professional specialists.
The third valuers have, as far as I understand it, been nominated by HMRC (not the family or solicitors ). I am not directly involved but have seen the letter saying Mr X of Y and co surveyors will be visiting to revalue all land and properties (for the third valuation)
The valuation of the land as a building plot seems ridiculous and unfair.
My main query was has anyone else had to have multiple professional valuations for IHT?
TIA
VigmanAny information given in my posts or replies is intended to be of interest and/or help to members of the forum. I cannot guarantee that this is accurate or up to date.0 -
Unless I am mistaken it is the District Valuer that does the valuation on behalf of. HMR&C. As I said before it is only fair and reasonable to value land in this way if it really does have potential developement value. That would require some input from the local planning authority. Perhaps you should look at the local,plan to see what is likely.0
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Yorkshireman99 wrote: »Unless I am mistaken it is the District Valuer that does the valuation on behalf of. HMR&C. As I said before it is only fair and reasonable to value land in this way if it really does have potential developement value. That would require some input from the local planning authority. Perhaps you should look at the local,plan to see what is likely.
I'm on top of the local plan as they are building up to 1000 houses around our village.
However this plot is a garden (and we want to keep it as such because of the old apple trees) between two rows of houses completely out of the building line?
The latest valuer is being shown it later that day and will be asked how it could be possibly considered as building land!
VigmanAny information given in my posts or replies is intended to be of interest and/or help to members of the forum. I cannot guarantee that this is accurate or up to date.0
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