As a general rule, the VOA (
IHTM23002) should not defer
negotiations where land is in the market for sale, unless
completion of the sale is imminent (say 2-3 weeks).
The taxpayer will have submitted a value in the IHT400 (
IHTM10021) that, in theory, should
fairly represent the market value of the land at the date of death
and the VOA will also have sales in the vicinity to use as
comparables. In most cases there should, as a result, be adequate
background material to use as the basis for meaningful discussion.
Given the volatility of the market over recent years, the further a
prospective date of sale moves from the date of death the less
relevance it has to the actual date of death valuation.
In addition, if the value of the property is agreed in an
excessive figure (meaning that the value agreed exceeds the sale
price) the taxpayer can submit a claim for loss on sale of land (
IHTM33001) relief. Otherwise we are
content to rely upon and stand by the advice and opinion of the
VOA.
Where there is an application to defer negotiations because
the land is in the market for sale you should clarify the
circumstances with the VOA. The origin of the application to defer
could be the VOA or the taxpayer. You should encourage them to
continue negotiations wherever possible. If the VOA considers that
the particular circumstances might warrant some deferment -
because, for example, the property concerned is very unusual,
please consult your Team Leader (if you are in Compliance Group) or
refer the case to TSS (if you are in PC&S (
IHTM02021)) for consideration. You
should also consult your Team Leader (Compliance Group) or refer
the file to TSS (PC&S) where you are unable to get discussions
restarted.
