IHTM23173 - Special valuation matters: benefit of building contracts

Where it is known that

• the deceased had entered into a binding contract for work to be done on his property, and
• at the date of death the work had not been completed

you should

• inform the Valuation Office Agency (VOA) (IHTM23002) accordingly, and
• indicate the cost of the work, where known.

The VOA's opinion of value (IHTM23141) should reflect

• the benefit of all work to be done under the contract, but
• without deduction for payment to be made under the contract.

The payments to be made under the contract will therefore be deductible as liabilities (IHTM28000) of the estate.