»Ê¹ÚÌåÓýapp

»Ê¹ÚÌåÓýapp deceased’s interest in land is valued along with other ‘relatedâ€� (IHTM09733) land owned by the deceased’s wife or civil partner (IHTM11032). »Ê¹ÚÌåÓýapp deceased’s interest in the land is valued at £40,000 (the ‘appropriate portionâ€� (IHTM09735)).Its separate value at death would have been £30,000. Within 3 years of death it is sold without the other land for £25,000. »Ê¹ÚÌåÓýapp sale is a qualifying sale for both sales of related property (IHTM09751) and loss on sale of land (IHTM33000) reliefs.

Step 1 � Revalue under loss on sale of land provisions

»Ê¹ÚÌåÓýapp value of the interest is adjusted under IHTA84/S195, which applies when an interest inland is valued with, and sold without, other land (IHTM33132).

Actual sale price = £25,000

Plus full value of death with related property (£40,000) less separate value (£30,000) = +£10,000

Total ‘sale value� = £35,000

Step 2 � Revalue under sales of related property provisions

Although the sale is a ‘qualifying sale� under these provisions, a further condition (IHTM09760) is imposed by IHTA84/S176 (4). In this case the sale price must be adjusted because there was a drop in value from the original separate value of £30,000 to the sale price of £25,000. As the original valuation � disregarding both loss on sale of land and sales of related property reliefs - was £40,000, the further condition was fulfilled.

»Ê¹ÚÌåÓýapp revaluation under IHTA84/S176 (2) is calculated as follows:

Property as revalued at step 1 using the basis of valuation with related property = £35,000

Less the adjustment which resulted from using that basis of valuation = £10,000

Property as revalued under the loss on sale of land provisions on the basis of valuation without related property = £25,000