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Where Taxpayers and Advisers Meet

IHT 404 Tenants in common

Dsmith264
Posts:2
Joined:Fri May 04, 2018 3:55 pm
IHT 404 Tenants in common

Postby Dsmith264 » Fri May 04, 2018 4:10 pm

Hi,
I am hoping someone can help me out with this as I've searched the internet and not found a similar query;
An estate I am dealing with contains a property that has never been registered with the land registry.
It was inherited by the deceased who then became tenants in common with her daughter who also resided at the property just over 20 years ago via a declaration of trust and deed of appointment.
I am attempting to fill out IHT 404 valuing the property at 50% of its value as set out in the deed
Column D of IHT 404 asks for the contribution from each joint owner. As the deceased inherited the property, you could argue neither her or her daughter had contributed anything to the purchase of the property so what figure should I be putting in this box?
Secondly, I assume that as the property has never been registered, there will be no record of the tenants in common agreement. Therefore should I include a copy of the deed outlining the agreement? If so, does this need to be the original document, a photocopy or a photocopy certified by a solicitor?
Many thanks in advance

AGoodman
Posts:1738
Joined:Fri May 16, 2014 3:47 pm

Re: IHT 404 Tenants in common

Postby AGoodman » Fri May 04, 2018 4:55 pm

Probably easiest to refer to the Additional Information box on IHT400 and then state "Inherited by deceased, 50% gifted to joint owner". You might be able to fit this into 404.

You will also need to check the GROB position so that 100% isn't treated as part of the estate. This may be okay provided the deceased continued to pay at least 50% of the outgoings.

No need to include docs unless they are asked for.

Lee Young
Posts:2707
Joined:Wed Aug 06, 2008 3:26 pm
Contact:

Re: IHT 404 Tenants in common

Postby Lee Young » Fri May 04, 2018 5:24 pm

Contribution is a misleading word in this context. Simply state they are 50/50 owners and have been from x date. I don't believe any other copy documents will be required, unless HMRC specifically asks for them when it reviews the paperwork.
Lee Young
Solicitor, Chartered Tax Adviser and Trust and Estate Practitioner


Partner, Frettens LLP
lyoung@frettens.co.uk
01202 491701

Dsmith264
Posts:2
Joined:Fri May 04, 2018 3:55 pm

Re: IHT 404 Tenants in common

Postby Dsmith264 » Sun May 06, 2018 2:05 pm

Many thanks for your help on this guys 👍


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