Price v Revenue and Customs: FTTTx 7 Oct 2010

INHERITANCE TAX – Related property provisions – what is the proper construction of the words ‘the appropriate portion of the value of the aggregate of that and any related property’ in section 161(1) IHTA? – Appellant contending that the concept of the aggregate of two properties cannot connote their transformation into a different description of property – HMRC contending that the aggregation required the deceased’s undivided half share in a property to be taken together with her spouse’s identical undivided half share, with the result that the freehold of the property with vacant possession was the subject of the required valuation – section 161(3) IHTA which provides the meaning of ‘the appropriate portion’ also construed – held following IRC v Gray that ‘the value of the aggregate’ was to be taken to be the price which the two items of property would fetch in the open market if offered for sale at the same time – held further that no deduction from the value was to be made on account of the notional costs of selling or the liabilities charged on the property- HMRC’s Determination upheld in principle – further valuation points to be referred to the Upper Tribunal pursuant to section 222(4A) IHTA if not agreed

[2010] UKFTT 474 (TC), [2011] WTLR 161, [2011] STI 310, [2011] SFTD 52
England and Wales

Inheritance Tax

Updated: 22 November 2021; Ref: scu.426639