IHTM33132 - Adjustments to sale price: valuation with, and sales without, other land

Where an interest in land ( IHTM33061)

• was valued on death in conjunction with any other interest, and
• the value of the interest on this basis is greater than it would have been if it was valued on its own

then the sale price ( IHTM33072) is increased by the difference between

• the value on death ( IHTM33100) of the interest, and
• the value which would have been the value on death if no other interests had been taken into account, IHTA84/S195.

Example

At death, a field owned by the deceased is valued as part of an entity which included adjoining land also owned by the deceased

The value of the field is £10,000

The separate value of the field at death would have been £8,000

Within four years of death it is sold without the adjoining land by a qualifying sale for £6,500.

The ‘sale value’ ( IHTM33073) is £6,500 + (£10,000 - £8,000) = £8,500

Where the interest is sold separately from the other interests, you should ask the VOA ( IHTM23000) to state the value of the interest at death when valued on its own. You should then adjust the sale price as above.

On the strict wording of IHTA84/S195 the adjustment is to be made not only where the interest in land is sold separate from other the interests but also where it is sold together with them. You should refer any case where a claim for relief is made in the latter situation to TG .

Where the interest was valued with related property ( IHTM09751) relief may also be available under IHTA84/S176 and takes the form of revaluation on death without reference to other interests.