In LF Chadwick & MC Hobart (Hobart's Executors) v HMRC (Upper Tribunal – 25 March) an individual (H) purchased a semidetached house in October 2002 for £268 450. H died in December 2005. His executors valued the house at £250 000. HMRC considered that this valuation was too low and issued a notice of determination valuing the house at £275 000. The executors appealed. The Upper Tribunal reviewed the evidence and allowed the appeal observing that the property had a 'relatively unattractive appearance' which would 'have resulted in reduced interest from potential purchasers'.
Why it matters: It is essential to submit convincing evidence if one wishes to claim that a property has declined in value since its purchase.
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In LF Chadwick & MC Hobart (Hobart's Executors) v HMRC (Upper Tribunal – 25 March) an individual (H) purchased a semidetached house in October 2002 for £268 450. H died in December 2005. His executors valued the house at £250 000. HMRC considered that this valuation was too low and issued a notice of determination valuing the house at £275 000. The executors appealed. The Upper Tribunal reviewed the evidence and allowed the appeal observing that the property had a 'relatively unattractive appearance' which would 'have resulted in reduced interest from potential purchasers'.
Why it matters: It is essential to submit convincing evidence if one wishes to claim that a property has declined in value since its purchase.
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
