IHT and drop in land values

[paddytt]

With the dramatic drop in land values recently, there is a risk that the value of land today is not much more than the tax due on the same land inherited a year ago. But where there is a will, it appears that the valuation date not necessarily taken on the date of death...?

Reading the Revenue website, the Valuation Date is the "date on which the Grant of Representation issues from the Probate Office". But how is it possible to get a land valuation on that date when the submission has to include a valuation of the land, and the submission might occur months before probate is granted?

thanks

 

[ramble]

The valuation to be used on the Revenue affidavit it the date of death valuation, this may or may not be the relevant date for Inheritance tax purposes when making a return. The relevant date for the puposes of paying your inheritance tax is the date on which you receive the benefit, or become entitled to it, which is usually the date of the grant of probate/administration. This is not straightforward and if you are unsure and have a specific difficulty I suggest you contact a tax consultant.