Overage on greenbelt land

Isdaman

Can anybody help with this question please as I am very confused. I am just completing the IHT400 form for my mothers estate. I think I have covered everything but I have a question about an overage (aka an uplift clause) on a small paddock I jointly owned with her which was sold about six months before she died. It is greenbelt land and is about a third of an acre in size. I have been told by somebody there could be a hope value attached to this and it should be included in the form. I don't understand what this means or where to enter it on the form. As the land has been sold and I have no control over what happens to it I can't see how I can attach any value to the overage at all. It is extremely unlikely it would ever get planning permission. The overage was obtained as the estate agent suggest it was a good belt and braces thing to do and my solicitor agreed and did the work for a minimal fee.


Can anybody tell me if this has to be included on the probate form? If it does how do you ascertain a value and which schedule would it go on?

g6jns_2

Isdaman wrote: »

Can anybody help with this question please as I am very confused. I am just completing the IHT400 form for my mothers estate. I think I have covered everything but I have a question about an overage (aka an uplift clause) on a small paddock I jointly owned with her which was sold about six months before she died. It is greenbelt land and is about a third of an acre in size. I have been told by somebody there could be a hope value attached to this and it should be included in the form. I don't understand what this means or where to enter it on the form. As the land has been sold and I have no control over what happens to it I can't see how I can attach any value to the overage at all. It is extremely unlikely it would ever get planning permission. The overage was obtained as the estate agent suggest it was a good belt and braces thing to do and my solicitor agreed and did the work for a minimal fee.


Can anybody tell me if this has to be included on the probate form? If it does how do you ascertain a value and which schedule would it go on?

Sorry to hear of your loss. Assuming your late mother's estate looks as if it might attract IHT you really need paid for professional advice. This may well save less than it costs. You need to consult a specialist not your run of the mill solicitor.

Isdaman

Thanks for the reply. The rest of her assets fall well under the IHT threshold, with about £130000 in hand. Its just this overage, I have no idea whether it should be included or not. I have already seen a solicitor who specialises in probate. She said just mention it but I'm concerned that will just drag things out.

Savvy_Sue

Isdaman wrote: »

Thanks for the reply. The rest of her assets fall well under the IHT threshold, with about £130000 in hand. Its just this overage, I have no idea whether it should be included or not. I have already seen a solicitor who specialises in probate. She said just mention it but I'm concerned that will just drag things out.

I think g6jns meant a solicitor specialising in land issues rather than a probate specialist. You might then need to go back to the probate specialist for advice on how to declare it.

However, as you seem to have a fair amount of leeway before IHT is due, I'd go back to the solicitor who specialises in probate and ask exactly what you should mention, and on which form. If she can't answer, either ask her to find out, or to recommend someone who can advise you.

I just googled overage hope value and got links to some reasonably detailed explanations: you might be able to work the answer out from that, and / or get some brief advice from one of the companies sharing the info.

g6jns_2

Isdaman wrote: »

Thanks for the reply. The rest of her assets fall well under the IHT threshold, with about £130000 in hand. Its just this overage, I have no idea whether it should be included or not. I have already seen a solicitor who specialises in probate. She said just mention it but I'm concerned that will just drag things out.

At that level of estate value HMR&C will not be interested.