I8.378 Joint property
Where the property to be valued consists of a person's share of property held jointly, whether held under a tenancy in common or in beneficial joint tenancy, only that share has to be valued, unless the related property provisions1 apply2.
M owns a half share of a house.
|His share is valued at||£19,000|
|M's daughter owns the other half, similarly valued at||£19,000|
|The value of the house in single ownership would be||£40,000|
|If M gives his half share to his son, the value transferred is||£19,000|
Contrast the position where the other share is related property: see I8.242A Example 1. See also I3.214.
Where the transferor owns one part of the property in his free estate and has an interest in possession in settled property which includes the other half of the property, the property should be valued in its entirety, with one half of the value attributed to each of the interests3. This valuation principle applies even if one of the shares is spouse or civil partner4 exempt or where the settled property is left out of account.
In England and Wales the value of property which is held jointly or in tenancy in common with someone other than the deceased's spouse or civil partner is reduced and the question of the appropriate deduction to be made has been the subject of decision in three reported cases. In an estate duty case, Cust v IRC5, the Referee decided that a deduction of 5% from half the value