IHTM09763 - Sales of related property, etc: example of how to revalue property when both the loss on sale of land and sales of related property provisions apply
The deceased바카라 사이트™s interest in land is valued along with other 바카라 사이트˜related바카라 사이트™ (IHTM09733) land owned by the deceased바카라 사이트™s wife or civil partner (IHTM11032). The deceased바카라 사이트™s interest in the land is valued at £40,000 (the 바카라 사이트˜appropriate portion바카라 사이트™ (IHTM09735)).Its separate value at death would have been £30,000. Within 3 years of death it is sold without the other land for £25,000. The sale is a qualifying sale for both sales of related property (IHTM09751) and loss on sale of land (IHTM33000) reliefs.
Step 1 바카라 사이트“ Revalue under loss on sale of land provisions
The value of the interest is adjusted under IHTA84/S195, which applies when an interest inland is valued with, and sold without, other land (IHTM33132).
Actual sale price = £25,000
Plus full value of death with related property (£40,000) less separate value (£30,000) = +£10,000
Total 바카라 사이트˜sale value바카라 사이트™ = £35,000
Step 2 바카라 사이트“ Revalue under sales of related property provisions
Although the sale is a 바카라 사이트˜qualifying sale바카라 사이트™ under these provisions, a further condition (IHTM09760) is imposed by IHTA84/S176 (4). In this case the sale price must be adjusted because there was a drop in value from the original separate value of £30,000 to the sale price of £25,000. As the original valuation 바카라 사이트“ disregarding both loss on sale of land and sales of related property reliefs - was £40,000, the further condition was fulfilled.
The revaluation under IHTA84/S176 (2) is calculated as follows:
Property as revalued at step 1 using the basis of valuation with related property = £35,000
Less the adjustment which resulted from using that basis of valuation = £10,000
Property as revalued under the loss on sale of land provisions on the basis of valuation without related property = £25,000