CA 17 January 1991. Mrs A had acquired a long lease on a flat granted by the local authority under right to buy provisions of Housing Act 1980 s7 at a discount of £24,600. The lease contained a covenant under s8 of the Act that the tenant would pay a percentage of the discount if, within five years of granting the lease, it was assigned or sublet to another party for a period of more than 21 years at anything other than a rack rent. On 17 January 1988 Mrs A died. The LT held that the open market value for capital transfer tax at the relevant date was £63,000 based on similar properties where the vendor was under a liability to repay a discount to the council and was therefore reflected in the open market value. It was also held the LT had no jurisdiction to decide any extent of liability between the hypothetical vendor and a third party (the council) as this did not affect open market value. The IRC appeal was allowed on the grounds that tax was charged on the value transferred which