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
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