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Probate value of timeshare?

Tax | Inheritance Tax Helpful? 3

Asked by jewdrop, submitted 31 January 2012.

Open Quote When assessing the value of an estate for probate/IHT, how does one work out the value of one week's timeshare in the UK?

The timeshare was bought for say £4,000 10 years ago, but currently has very little or no resale value, and indeed it is very difficult to dispose of. There is an annual maintenance charge of approx £400.
End Quote

Answered by Justin on 06 September 2012

The simplest way is to try and find similar second hand timeshares for sale and use these prices as a guide - bear in mind actual sold prices are probably lower than asking prices. In fact, as you mention, the value of many timeshares is effectively zero - as they can't even be given away. So there's a fair chance the value for probate purposes will be zero. Provided you can document some evidence to this effect (e.g. adverts for similar properties) I doubt HMRC will raise any issues.

It's also worth noting that HMRC has a Shares & Asset Valuation department which specialises in tricky to value assets. While they cover timeshares, it appears this only applies to those based overseas.

A final point to bear in mind is if the timeshare literally can't be given away the estate faces the problem of how to offload it, assuming no-one is willing to inherit it. This could delay probate.

Please note this answer does not constitute a recommendation or financial advice and should not be relied upon when making specific investment or other financial decisions. You should always undertake your own research into whether a product or service is appropriate for your needs and, if necessary, use a qualified professional adviser.

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