Mark McLaughlin warns that inaccurate valuations of a property for inheritance tax purposes can have unfortunate consequences.
How much are your assets worth? Some asset valuations (e.g. quoted shares) are relatively straightforward; others might cause disagreements with HM Revenue and Customs (HMRC).
What is ‘market value’?
For example, when valuing a chargeable lifetime gift of a property for inheritance tax (IHT) purposes, or a property on an individual’s death, its market value must be ascertained.
Unfortunately, it is unclear exactly what constitutes ‘market value’. The definition in the IHT legislation is only brief: ‘…the price the property might reasonably be expected to fetch if sold in the open market at that time; but that price shall not be assumed to be reduced on the ground that the
