These instructions only apply to joint property (
IHTM15011) where the contract for sale
was entered into
after the death. Different instructions apply for
where the contract was entered into before the death (
IHTM23186) but completion did not occur
until afterwards.
Whilst, with contracts for sale of land entered into after
the death where the share of the property to be valued is the
whole, it is often possible to use the sale value without reference
to the VOA (
IHTM23002), jointly owned land where
the deceased’s entitlement is a fractional share requires a
different approach. This is because a discount will apply for joint
ownership as the valuation event is the ‘moment before
death’, at which point in time the land was jointly owned. We
do not value property with hindsight by having regard to the fact
that a sale was subsequently achieved without recognising the fact
of joint ownership.
It is up to the VOA to decide what the appropriate discount
is in each case. Therefore you should still refer cases where the
deceased’s entitlement was a fractional share in joint
property to the VOA where there has been a sale as a result of a
contract entered into after the death. The only exception to this
will be where, by virtue of the related property (
IHTM09731) provisions, the share to be
valued is a whole share – in that case you may proceed per
the instructions on sales of entirety shares (
IHTM23185), as no discount for joint
ownership would be due.
When referring a fractional share to the VOA where there has
been a binding contract for sale entered into after the death, you
should make sure that the VOA is provided with all the information
on the sale that you have as this will help him decide the level of
the discount. You should also tell the VOA to have regard to the
circumstances at death by what may be evidenced shortly afterwards
- the fact that the joint owners, collectively, were willing to
sell. As one area for potential disagreement between the joint
owners has been removed, the relevant discount might be lower than
the situation where agreement to sell was not overtly evident.
