Gift of overage and PET

(lhibell) #1

I have a client who has an overage right over a property which he sold some time ago, he now wishes to assign this to his daughter but as it currently has no value I am wondering how to advise on a PET, would HMRC see it as having some value if he died within seven years? or would it be a wait and see. Has anyone dealt with something similar, thanks
Lee Hibell
Paul Robinson Solicitors LLP

(andrew.goodman) #2

The PET would be the market value of the right as of the date of the gift. The actual value will depend on the circumstances so you could obtain a valuation now or rely on only getting one if the PET fails.

If all the current facts point to it being worthless (because development is extremely unlikely) then I would have thought you could comfortably postpone a valuation in the hope it isn’t needed and would be simple to produce if it was.

Depends whether this is a random patch of land next to a house or 50 acres bought by a property developer.

Andrew Goodman
Osborne Clarke LLP