swarb.co.uk - law index
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Inheritance Tax - From: 1991 To: 1991
This page lists 1 cases, and was prepared on 08 August 2015.
ÂAlexander v Inland Revenue Commissioners (1991) 64 TC
1991
CA
Ralph Gibson LJ, Nicholls LJ
Inheritance Tax
The deceased's flat in the Barbican was to be valued for Capital Transfer Tax. She bought it under right to buy at a substantial discount but subject to a time limited charge for that discount. She died within a year. The flat was subject to a charge to repay all or part of the discount if the flat was assigned within five years of its acquisition. This would not be triggered by an assent to a beneficiary under her will. The executor contended for a valuation of £35,400, deducting the full discount. The Inland Revenue's valuer contended for a reduced deduction of about £13,000, reflecting his assessment of the likelihood of an actual sale during the remainder of the five-year period. There was a procedural issue as to whether the matter should be determined by the Lands Tribunal or the Special Commissioners. Held. The case was remitted the case to the Lands Tribunal with a clear direction as to the valuation principle. Its decision would have given some support to the appellant if it had directed that the notional sale of Mrs Alexander's flat must for valuation purposes be treated as having triggered an immediate liability for the full £24,600 under the Housing Act charge. But that was not the direction. It was that the notional sale should not be treated as triggering the repayment liability, but that the hypothetical purchaser would be in the position of having to pay off the charge if he made an assignment during the remainder of the five-year period.
1 Citers
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