Deceased dies owning 30% of a house, 30% owned by his wife and 40% by his daughter. Does the IHT discount for joint owners apply as one joint owner is his daughter, or only in part as one of the other joint owners
is his spouse?
Simon Northcott
The deceased’s 30% share and his widow’s 30% share are “related property”, so that the valuation of the deceased’s interest should be an arithmetic half of the value for a 60% interest.
So, yes, the discount for joint ownership should be allowed by HMRC due to the daughter’s 40% ownership.
Paul Saunders