Am I correct in thinking that Joint Ownership Discount automatcially gets cancelled if you apply for a Loss on Sale using form IHT38?
Martyn Dixon
Harold Bell Infields & Co
In effect, yes, as s.191(1) IHTA 1984 requires the sale value to be included on the IHT38 claim.
Paul Saunders FCIB TEP
Independent Trust Consultant
Providing support and advice to fellow professionals
Continuing with this thread, the position is, the IHT400 was submitted reflecting the deceased’s interest in the property as £207,000 (he owned 1/3rd), less 15% discount for joint ownership property, as (rightly or wrongly), the property is jointly held with his late wife, whose Will left him a life interest in the property and thereafter to her beneficiaries.
I also included the wife’s 2/3rds in the IHT18, valued at £414,000, less the 15% joint ownership discount.
HMRC appear to have accepted the position.
I do not now wish to claim loss on sale for the deceased share (now worth £185,000), as the loss of the joint ownership discount is more than the decrease in value. However, it does seem to me I can state in the C4 Corrective Account that the Interest in the trust element has reduced from £414,000 to £370,000, but I do not want to unnecessarily rock the boat, or claim somehting which I am not able to claim.
Has anyone else experienced a similar dilemma?
Martyn Dixon
Harold Bell Infields & Co