SVM113070 - The Statutory Open Market: Case Law – the Property

Duke of Buccleuch v IRC [1967] 1 AC 506 - 'the property' for valuation purposes is deemed to be the property comprised in the estate which it is proper to treat as a unit for valuation. In the view of Lord Wilberforce in that case, the problems of grouping individual items of property in units of valuation must be resolved in a common sense way.

The Buccleuch case concerned dividing the property into small units. Conversely it may be appropriate to add individual items together.

In A-G of Ceylon v Mackie [1952] 2 AER 775 (PC) - the deceased had holdings of management and preference shares which together (but not separately) carried control of the company. It was held that the executors must be supposed to take the course which brings the highest price for the combined holdings and to offer the management and preference shares together as a single lot (a).

It should be emphasised that these cases relate to grouping and dividing property in Inheritance Tax valuations only.

1. For Estate Duty, the Mackie principle was applied in a limited manner to property passing under a single title; but for Inheritance Tax no such limitation exists. See Dymond's Capital Taxes Volume 2 paragraph 23.115.