Valuing properties that are let at date of death

Trusts Discussion
1

Hi, we have an estate where several properties belonging to the deceased are let on ASTs. We have obtained valuations of these properties on the basis of both tenanted and vacant possession; the latter being more valuable.

The intention of the PRs is to give notice to the tenants and sell the properties with vacant possession.

In terms of reporting the property values on the IHT400 form, do we report the value with the tenant in situ as at date of death, or the higher value as estimated with vacant possession.

I look forward to receiving your comments.
Gill Collins

2

You include the date of death value on the IHT 400.

It is only if a valid notice to quit had been served before death that the vacant possession value would directly influence the date of death valuation.

Any uplift between the tenanted value and the vp value (once realised) will be subject to CGT.

Paul Saunders FCIB TEP

Independent Trust Consultant

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