IHT205 - Question 13 Additional Information : House valuation information?

allihopa

Hi All,

I have completed IHT205 (and IHT217 and PA1P) and am ready to send it off.  Just a couple of questions.

The estate contains a house and some adjoining land with planning permission (in two separate deeds).  We got three Estate Agents to value the house and the land - one of them came up with £415 and £150k, one £395k and £140k, the other £345k and £200k. They all stated that is is very difficult to say as the house and plot has great potential (location, size, existing Buildings).  So, erring in cautious side, and having researched the EAs, I have entered £415k and £150k as the values of the house and land in IHT205 (The EA who came up with valuation has considerably more experience in selling houses/land in rural locations with development opportunities).  If they make that much great, but I reckon it will be a little less (in all likelihood, we'll miss the Stamp Duty holiday, so the crazy current housing market may have subsided by completion). In all, the total value of the estate does not exceed IHT (£325k+£325k=£650), around £25k under.

My questions -

• Do I need to or should I include the information about the valuations into Question 13 on IHT205?
• Or will I just adding information that is not needed or asked for specifically, and so may actually cause delay?

Cheers

Keep_pedalling

No you don’t, but really with this value of estate you should really get a paid for RISCs valuation, as you may get a valuation challenge from HMRC. An under valuation could also result in unnecessary capital gains liability when the property is sold. 

allihopa

Thanks for the reply.  I should have mentioned, the valuations were carried out by three companies - two were Estate Agents, and one were Chartered Surveyors.  We went with the one from the Chartered Surveyors as they seemed to understand the property/land value better and seemed to have a more professional approach.  So maybe I should put:

"House and land value based on valuation from XXXX Chartered Surveyors."

in question 13 so they know that its been professionally valued.

Robert_McGeddon

Is the house being passed on to children / grandchildren? If so, there is probably Residential NRB available too - so the estate would be well under the IHT threshold even if the property were valued much higher than you currently think. So little risk of HMRC enquiry.

Keep_Pedalling's point on the base cost for CGT then comes into play - a higher valuation has no impact on IHT but would help future CGT calculations.