IHTM30432 - Reconsideration by taxpayers: changed circumstances

The offer to pay tax on a higher value may reflect a correction to

• the nature or character of the property or interest to be valued so that in effect we now have to value different property, or
• other information on which the original valuation was based.

This may be because the taxpayers have received further information to the effect that, for example

• property previously valued subject to a statutory tenancy should be valued with vacant possession
• property is freehold (IHTM23001), not leasehold as previously thought, or
• the extent of the deceased’s share or interest is greater than originally disclosed.

Refer the case to your manager if it seems that

• the property to be valued may have to be redefined, or
• the original valuation was based on wrong or misleading information.

In other cases you are free to consider whether to accept offers of tax on a higher value, e.g. on a sale of the property in question.

If the taxpayer offers to pay tax on what seems to be an unduly high value, you should consider a referral to the appropriate valuation specialist for advice.