Vals L2

Question 1

L2 - Your inheritance tax valuation on an industrial unit in bynea, if the Property was tenanted, how would the method of valuation differ?

Answer 1

I would use the investment method

Question 2

L2 - your comparables that you recorded in an excel spreadsheet, did you record them in a specific order at all?

Answer 2

Yes - I recorded them with regard to Comparable Evidence in real estate Valuation PS 2019.
Cat A
Cat B
Cat C

Question 3

L2 - what did you expand the radius by to search for comparables?

Answer 3

5 miles but ensured it was a similar area

Question 4

L2 - for your inheritance tax valuation on a residential dwelling, how would it work if the refurbishment was after the death and increases the value, but the valuation is at the date of death? Do you account for the potential increase in value for the time difference between death and inspection?

Answer 4

I wouldn’t reflect any incraese in value arising from refurbishment works carried out after the date of death. The valuation if the open market value at the date of death, based on the property’s actual physical condition at that date.
HMRC requires one value only.

Question 5

L2 - tell me about the residential property you valued in Swansea

Answer 5

5-bed detached house, two storeys with driveway, garage and privat garden to the rear in good condition

Question 6

L2 - What purpose was the valuation for?

Answer 6

inheritance tax

Question 7

Bynea Industrial: how was the local market activity limited?

Answer 7

There weren’t many comparable trasnsactions in the area

Question 8

Industrial, Bynea: What was your advice to the client?

Answer 8

advised my client i had to use a wider radius for my comparables

Question 9

Resi, swansea: what was your advice to your client?

Answer 9

I advised my client that the property was in superior condition to the comparables but i have to value at date of death

Question 10

What does the inheritance Tax Act 1984 state?