Valuing a property for IHT when jointly owned

sunsetboulevard

I owned the property with my now deceased father.  Have I read the advice right on Gov.UK that with jointly owned property I divide the total value by 2 and then deduct a further 10% from my father's share?

bobster2

If a property is owned as tenants in common (e.g. 50/50) and the co-owner continues to reside in the property, then the relevant value of the deceased person's half-share does need to make an allowance for the co-owner continuing to live there (i.e. it's how much could you sell their share for, given that someone still lives there).

In a RICS standard valuation the deduction for continuing occupation by the co-owner is normally 15%.

If the co-owner does not continue to occupy the property the deduction is less. Here it says 10%...

https://www.peterbarry.co.uk/blog/inheritance-tax-and-jointly-owned-property/

Keep_pedalling

bobster2 said:

If a property is owned as tenants in common (e.g. 50/50) and the co-owner continues to reside in the property, then the relevant value of the deceased person's half-share does need to make an allowance for the co-owner continuing to live there (i.e. it's how much could you sell their share for, given that someone still lives there).

In a RICS standard valuation the deduction for continuing occupation by the co-owner is normally 15%.

If the co-owner does not continue to occupy the property the deduction is less. Here it says 10%...

https://www.peterbarry.co.uk/blog/inheritance-tax-and-jointly-owned-property/

Although that is correct I would not bother with the discount unless the estate had an IHT liability, apart from keeping things simple a 10% discount is going to build in a potential capital gains liability when the house is sold. I know that last point does not apply in this case as it it the OPs home, but as a general point treat the discount like any of the other exemptions only use it if reduces IHT.