Inheritence tax and intestacy

sakt77

John_Pierpoint wrote: »

All those inheriting an interest are adults - so they are capable of agreeing a Deed of Variation and there is no automatic trust created for the son.

You could have an interesting discussion with the VOA (Valuation Office Agency) still better known as the District Valuer, but as we all have access to the values of land sales these days, the Valuation Office is probably over worked and prepared to haggle on valuations.
(I've twice managed to get a reduction in the third case we used the sale value as there was no IHT payable any way.)

I know of someone with a small bungalow on a large corner plot, who was offered well into 7 figures by a developer, wanting to demolish the bungalow at the height of the boom..

The value for IHT is the value on the day of death, though you can substitute the actual value for a sale within 3 years in a falling market. In a rising market you should be able to argue that the increase is subject to CGT in the hands of the beneficiaries; where it would be subject to individual nil rate bands and costs of sale are allowable expenses..

This is exactly the house..own drive etc and they'd probably throw up 3-4 houses on the land easily.
So the price would be for the value of the house on the day of his death?
If they were to get planning permission and sell the property for far more they'd be ok and not incur IHT?
Cheers