The Leasehold Reform Act 1967 came into force on the 1 January 1968 and its scope has been substantially extended by subsequent legislation. Under the Act owner-occupiers of leasehold ( IHTM23001) houses within certain statutory limits are given the right to
The VOA (
IHTM23002) should automatically take
account of the effect of the Act when valuing leasehold interests
and freehold reversions. There is no need for special instructions
from this office.
Where at the time of enfranchisement there is outstanding IHT charged on the freehold reversion you should assume that the charge on the reversion is
As a result, where tax is being paid by instalments (
IHTM31418), the right to pay by
instalments ceases. The outstanding tax, or the remaining
instalments, should therefore be claimed from the landlord as the
vendor. You should note, however, that in order to avoid or
mitigate financial hardship the Court, on application by the
landlord, has power under s.36 to discharge or modify any charge on
the property, including a charge for tax.
This Act does not apply in Northern Ireland.