Property Hope Valuation Report

From £60 + VAT (for properties under 0.25 acres)

The DevProbate Report will dramatically reduce the risk and exposure from claims under the Inheritance Tax Act 1984 when valuing property as part of an Estate. By a analysing a property in the same way as developers, DevAssist can ensure that property is not under sold, protect’s the Executor’s position as well as giving reassurance to the beneficiaries.

The DevProbate report explores the development opportunities of a property to ensure it achieves the full financial potential.

Service includes:

  • Development Potential of the subject property

  • Relevant planning history of the subject property

  • Explanation of emerging and adopted Local Plan Policy

  • Ordnance Survey Mapping, identifying potential development sites

  • Delivered in 5 working days

  • A Fast track 24-hour option is available for an additional £40 + VAT

  • Sites larger than 0.2 acres need to be quoted individually

Determination from court case Palliser v HMRC [2018] UKUT 0071 (LC)

A statutory valuation which is to be made in accordance with section 160 of the 1984 Inheritance Tax Act (160 IHTA),  requires the determination of the price which the Property might reasonably be expected to fetch if sold in the open market.

As the property was being sold with the potential for improvement, then if the market is prepared to pay a price which includes the prospect of an enlarged floor space, then that must be taken into account in the valuation.

To the extent that the potential has not been crystallised by a planning permission its value will be hope value rather than development value, but either way it is not an element of value that falls to be ignored under section 160 IHTA.

A reminder that any valuation used must be able to stand up to scrutiny by the District Valuer.

Property Valuations (Hope Value) Inheritance Tax Act 1984

As the executor or personal representative for an Estate, there is always the challenge of valuing the assets as part of the Estate Administration process. It is easy to think that where an Estate has property as assets, it is okay to rely on an Estate Agents valuation, but that is not in the best interest of the Estate or compliant with the Section 160 of the Inheritance Tax Act 1984 (IHTA).

To protect the beneficiaries of the estate and your own professional indemnity insurance as an Executor, it’s important to find experienced surveyors who are able to provide valuation advice for Capital Gains Tax purposes and to negotiate with the Valuation Office Agency in respect of Capital Gains and Inheritance Tax issues.

Recent cases have shown that HM Revenue & Customs (HMRC) are proactive at ensuring the IHTA is complied with and that the appropriate tax is paid on an Estate.

In the Land Chambers case, Palliser v HMRC [2018] UKUT 0071 (LC) a Lands Chamber case, the Upper Tribunal found that the property in need of modernisation but with great potential should have been valued for IHT purposes with the additional hope value included.

In this case a Notice of Determination was served by HMRC under section 221 of the Inheritance Tax Act which meant the beneficiary received an asset of a higher value, resulting in the Estate owing more inheritance tax.

About DevAssist

The DevAssist team are experienced in assessment of the development potential of commercial and residential properties, considering the impact of third party development together with the opportunity and hope value of a given property.