IHTM23015 - Investigation of form IHT405: Page 4 of form IHT405 – special factors that affect the value

Page 4 asks if any building on the land was subject to any damage that may affect its value. If the answer to this question is ‘yes’ the taxpayer is asked to

• give details of the damage
• provide a copy of any survey or structural engineers report, and
• say whether the deceased’s buildings insurance covered the repairs and whether any claim will be made under the policy. If a claim is to be made, the taxpayer should provide copies of any correspondence with the insurers or loss adjusters

If the taxpayer answers ‘yes’ to the question but does not provide this information you should ask them to provide it before dealing with the land according to the instructions on damaged property ( IHTM23203).

We also ask whether there were other factors such as development potential that might affect the value. The taxpayer should send us a copy of any planning approval notice that applies to any item of land

If the question is unanswered you should assume that the property was not subject to any damage or development potential at the date of death unless other information on the file indicates that it was. In which case you must ask for the above information and then deal with it according to the instructions.