In a situation where the household goods are jointly owned
(and the related property provisions (
IHTM09731) do not apply) the taxpayer
may seek a discount against the value of the deceased’s
share. In such cases, you need to establish the nature and purpose
of the joint ownership, together with details of any trust on which
it is held. Ask the taxpayer to state how the property was acquired
and, if purchased, what proportion of the purchase price was
provided by the deceased.
Whereas we allow a discount as a matter of course for jointly
owned land, we do not do so automatically for jointly owned
chattels as the discount is to reflect problems with disposing of
less than a full share and, for chattels, the circumstances in
which a sale could be obtained may vary. Once you have established
the facts, you need to consider, with the assistance of Technical
Group or SAV if necessary, whether the discount should be allowed
as claimed.
