Akanwo (as personal representative for the estate of Akanwo Deceased) v Revenue and Customs Commissioners
| Jurisdiction | UK Non-devolved |
| Judgment Date | 10 April 2018 |
| Neutral Citation | [2018] UKUT 113 (LC) |
| Date | 10 April 2018 |
| Court | Upper Tribunal (Lands Chamber) |
[2018] UKUT 113 (LC)
Upper Tribunal (Lands Chamber)
Tax – Inheritance tax – Valuation under IHTA 1984, s. 160 – Terraced house – Analysis of comparable sales – Valuation determined at £260,000.
[1] This appeal concerns the deemed disposal for the purposes of Inheritance Tax of the freehold residential house known as 180 Morley Avenue, London N22 6NT (“the property”) which was owned by Miss Taiwo Akanwo who died on 12 September 2012 (“the valuation date”). The appellant is Mrs Dorcas Adebowale Akanwo, executor and personal representative of the deceased (“the executor”).
[2] The executor contended that the property should be valued at £200,000, but this figure was disputed by Her Majesty's Revenue and Customs (“HMRC”) Inheritance Tax Office. As the parties have been unable to agree a figure, and relying upon the opinion of the District Valuer, HMRC issued a Notice of Determination on 14 November 2016 pursuant to section 221 of the Inheritance Tax Act 1984 (“the 1984 Act”) under which the deceased's freehold interest was valued at £260,000. This valuation was upheld by HMRC following an internal statutory review on 21 April 2017.
[3] Under section 222(2) of the 1984 Act the executor appealed the Notice of Determination to the First-tier Tribunal (Tax Chamber) (“FT-T”) on 19 May 2017 maintaining her opinion of value at £200,000. Following this, pursuant to section 222(4), HMRC applied for the proceedings to be transferred to this Tribunal. By a Direction of the FT-T dated 16 August 2017 the appeal was referred to this Tribunal for the sole purpose of determining the valuation dispute.
[4] I have determined this appeal on the papers, having taken into consideration correspondence and copy documentation provided by both the appellant and HMRC, and the expert witness report served for the respondent by Mr Daniel Newell MRICS of the Valuation Office Agency (“VOA”).
[5] In accordance with section 160 of the 1984 Act, the market value of any asset is defined as:
the price which the property might reasonably be expected to fetch if sold in the open market at that time [the valuation date]: but that the price should not be assumed to be reduced on the ground that the whole property is to be placed on the market at one and the same time
In this case, the value of the property would not be reduced, in reality or notionally, by being sold as a whole entity at the valuation date of 12 September 2012.
[6] Morley Avenue is an approximately 700m. long residential street in the Noel Park Conservation Area close to Wood Green Shopping City and within about half a mile of Wood Green Underground station (Piccadilly Line). The property is located on the south side towards the eastern end of the avenue and is a centre unit in a terrace of 24 cottages.
[7] The property comprises a two storey late “Victorian house of traditional 9” solid brick construction under slate covered pitched roofs. It has double-hung sash windows on the front and rear elevations and a gabled open porch to the front. There is a single-storey extension to the rear. The...
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