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Where Taxpayers and Advisers Meet

valuing part interest in house for IHT purposes

rmim
Posts:37
Joined:Sun Mar 13, 2016 5:15 pm
valuing part interest in house for IHT purposes

Postby rmim » Fri Nov 03, 2023 3:59 pm

I have lived and looked after both my mother and father in the same house for about 35years. I still live in the house now. They both past away recently.

I had the house valued recently but this give the value of the whole house. Originally the house was a 3 bed semi. I personally built the extension/loft conversions etc.over the years with my money.

We had always talked about the 7 year rule and gifting part or all of the house to me to reduce and IHT. We never got around to doing it. My mother died unexpectantly.

I never registered any interest in the house or anything.

I feel that I should not declare the whole value of the house as part of that house was built by myself.

How would I go about doing this so I can correctly report a lower value for the house?

pawncob
Posts:5083
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: valuing part interest in house for IHT purposes

Postby pawncob » Fri Nov 03, 2023 5:33 pm

Even with evidence of expenditure, you'll have hard time persuading HMRC that a lower valuation is acceptable.
You might have a claim on the estate for the expenses incurred, but if you're the beneficiary, there's no advantage other than a potential reduction in IHT.
With a pinch of salt take what I say, but don't exceed your RDA

rmim
Posts:37
Joined:Sun Mar 13, 2016 5:15 pm

Re: valuing part interest in house for IHT purposes

Postby rmim » Fri Nov 03, 2023 6:26 pm

thanks for the reply pawncob.

yes i am the beneficiary. yes im trying to reduce iht.

the family house was just valued at 550,000 (i guess it would have been less with no loft conversion etc) the second house was valued at 400,000. And my mum must have had over 50,000 in the bank, i have yet to find out. So if I can reduce the value even by 50,000 that would help but the extensions and things cost me more than that. It feels like im being taxed on something that i already paid for.


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