Mark McLaughlin looks at discounts from the market value of jointly-owned properties for inheritance tax purposes.
Land and buildings (e.g. the family home) are often held in joint names, such as by spouses (or civil partners), or parent and offspring. When it comes to valuing an interest in a jointly-owned property for inheritance tax (IHT) purposes (e.g. on death), it is necessary to consider the valuation methodology.
Disposing of a joint interest
As a general rule, the value of a property for IHT purposes is its ‘market value’ (i.e. the price which the property might reasonably be expected to fetch if sold on the open market at that time). HM Revenue and Customs (HMRC) normally instruct the Valuation Office Agency (VOA) to undertake valuations on its behalf.
A jointly-owned house could be held either as ;