Valuing property in an estate: valuing property together
You may see cases where to obtain a better price it is appropriate to value items of property (IHTM04030) together. This applies even if the property is held at other titles (IHTM04045) in which the deceased had a beneficial entitlement (IHTM04031). The authority (IHTM09714) for valuing items of property together is provided by case law.
This situation will mainly apply to the valuations of unquoted shares, interests in land and undivided shares of property. Less frequently, it will apply assets that have a particular value as a complete ‘set’ such as a herd of pedigree cattle or an art collection.
Deceased’s free estate includes a half share of his residence and 40 out of 100 issued shares in X Ltd, a private company. Deceased was also life tenant under the Will of his former wife of the other half share of his residence and a further 20 shares in X Ltd.
You will need to value
- the entirety of the residence
60 out of 100 shares in X Ltd.
It is not essential (IHTM09713) that the all the property being valued together in this way is chargeable to tax.
If property valued in this way is sold within three years (IHTM09751) for a lower amount then relief may be due.