10/15% reduction in value of joint property allowable against a GWR?

Trusts Discussion
1

I have a case where mum gifted 50% of her home to her son in 2017 and then continued to live in the property. She has now died and IHT is payable. I am declaring the full value of the property as a GWR as I can’t see any exemption that can be claimed.

My query is, where the property is held jointly with her son, is it possible to claim the 10-15% joint ownership reduction in value of the property? I can’t see anything to say why not but something feels a bit off about it… Has anyone else looked to claim this exemption against a GWR?

Many thanks

2

Since the law pretends the lifetime gift was never made, the asset to be valued is the entirety. This assumes mum didn’t pay a market rent.

3

And it’s not an exemption: it is a fact of life that in some circumstances a fractional share is worth less than its mathematical share of the value of the entirety.