Where the revaluation of the interest results in a revised date of death value ( IHTM33100) that is greater, the sale price ( IHTM33072) is reduced to what it would have been if the changes had not occurred.
Example
At the time of death the market value of land is
£10,000.
Within the four year period a house is built on the land
The market value at the date of sale of the land with the
house is £25,000
But without the house it would have been £8,000
Had the house been on the land at the time of death its value
would have exceeded £10,000 (the value of the land at the date
of death)
For relief purposes the sale value is taken to be £8,000
You should ask the VOA (
IHTM23185), using form VOA 4, to agree
the value of the interest at the date of sale (
IHTM33071) on the assumption that the
changes had not occurred and the interest remained in the same
condition it was in at the date of death. This revised value is the
sale value (
IHTM33073).
