IHTM23034 - Making a referral to the VOA: which
type of valuation is appropriate?
Most referrals will be requests for formal valuations on either
VOA 1 (
IHTM23042) or VOA 2 (
IHTM23043). Informal opinions (
IHTM23060) of value are only used in
rare cases. For example,
- when it appears that there might be a
claim by reference to land, and you need to know its approximate
value to justify the pursuit of such a claim, or
- where no grant has been taken out to the
deceased, and it is necessary to place an approximate value on
settled property (
IHTM16000) which has been
disclosed
When making the formal reference you have to decide which of VOA
1 or VOA 2 to use. The different forms give the VOA (
IHTM23002) an idea of the likely
complexity of the valuation exercise. You should therefore use the
forms as follows
- form VOA 1 is used in straightforward
cases – usually the principal private residence and other
residential property – where it is felt that the VOA will be
able to reach a conclusion after an initial appraisal (
IHTM23222), with possibly an inspection
and valuation (
IHTM23223) as well. The form should be
used in any case requiring a formal valuation other than those
specified as appropriate for form VOA 2.
- form VOA 2 should be used if
-
- there are more than four properties in any
one VOA Unit
- agricultural relief (
IHTM24001) has been claimed
- business relief (IHTM25130) has been
claimed
- property on the land is suffering from
damage (
IHTM23203) that may affect its
value
- goodwill (
IHTM23179) is involved
- the land to be valued was subject to a
gift with reservation (
IHTM14025)
- a mineral (
IHTM23197) valuation is needed
- the taxpayer has claimed conditional
exemption (
IHTM11260)
- woodland relief (
IHTM23208) is involved
- lifetime transfer cases where land has
been retained by the donor
- partnership property (
IHTM23198) is involved
For supplementary material/background that needs to be forwarded
to the VOA use the VOA 3 in appropriate circumstances (
IHTM23045) with either form.
This distinction between standard and complex referrals
provides a first indicator for VOA staff when they undertake their
risk assessment process.
