Valuation Office Agency
There are special rules for valuing property that is included in an estate if there is other property that is related to it, s.161 IHTA 1984. The rules apply in situations where valuing the property together with the related property produces a higher value than by valuing the property on its own.
Broadly speaking, related property is property that
- in the estate of a spouse/civil partner, or
- comprises, or has comprised within the preceding five years, property donated by either spouse or civil partner to a charity, charitable trust or to one of the political, national or public bodies to which exempt transfers may be made
The rules apply to both lifetime transfers and transfers on death.
HMRC will decide what property is to be regarded as related property.
Related property provisions apply for IHT purposes only. There are no similar provisions in CGT legislation.