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    • charb56
    • By charb56 13th Sep 17, 1:47 PM
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    charb56
    probate property valuation less than current estate agent valuation
    • #1
    • 13th Sep 17, 1:47 PM
    probate property valuation less than current estate agent valuation 13th Sep 17 at 1:47 PM
    can anyone advise, my late brothers property was given a formal RICS valuation from a reliable company of £450,000 9 months ago. we have now received probate grant and have started getting valuations from estate agents to look at selling the property in the near future which are coming in around £30-50,000 higher- we don't know if the actual selling price would end up lower and it is in an area of greater London where prices have risen. would this be subject to an HMRC enquiry if the selling price was a lot more , and is there any kind of time factor in this, say, if we kept the property for a year or two and then it sold at a higher price?
Page 1
    • Yorkshireman99
    • By Yorkshireman99 13th Sep 17, 2:27 PM
    • 2,950 Posts
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    Yorkshireman99
    • #2
    • 13th Sep 17, 2:27 PM
    • #2
    • 13th Sep 17, 2:27 PM
    can anyone advise, my late brothers property was given a formal RICS valuation from a reliable company of £450,000 9 months ago. we have now received probate grant and have started getting valuations from estate agents to look at selling the property in the near future which are coming in around £30-50,000 higher- we don't know if the actual selling price would end up lower and it is in an area of greater London where prices have risen. would this be subject to an HMRC enquiry if the selling price was a lot more , and is there any kind of time factor in this, say, if we kept the property for a year or two and then it sold at a higher price?
    Originally posted by charb56
    If you have probate then HMR&C have accepted the valuation at the date of death. Any gain above that may be subject to CGT less any allowances. You might want to discuss it with the valuer.
    • Crabapple
    • By Crabapple 13th Sep 17, 2:39 PM
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    Crabapple
    • #3
    • 13th Sep 17, 2:39 PM
    • #3
    • 13th Sep 17, 2:39 PM
    It depends whether HMRC have agreed the valuation or not. They may investigate property values but if they query it then you should refer back to the surveyor to explain.

    If there is a post death increase in value then you need to look at whether there is a CGT liability.

    Having the grant of probate does not mean HMRC have looked at or agreed the value.
    Daughter born January 2012 Son born February 2014

    Slimming World ~ trying to get back on the wagon...
    • Yorkshireman99
    • By Yorkshireman99 13th Sep 17, 4:12 PM
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    Yorkshireman99
    • #4
    • 13th Sep 17, 4:12 PM
    • #4
    • 13th Sep 17, 4:12 PM
    It depends whether HMRC have agreed the valuation or not. They may investigate property values but if they query it then you should refer back to the surveyor to explain.

    If there is a post death increase in value then you need to look at whether there is a CGT liability.

    Having the grant of probate does not mean HMRC have looked at or agreed the value.
    Originally posted by Crabapple
    Surely the clearing of probate by HMR&C means they HAVE accepted the value? At that that sort of value they would almost certainly involved the District Valuer. I don't see how they can have it both ways.
    • Crabapple
    • By Crabapple 13th Sep 17, 4:21 PM
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    Crabapple
    • #5
    • 13th Sep 17, 4:21 PM
    • #5
    • 13th Sep 17, 4:21 PM
    Like I said yesterday on another thread, sending back the receipt that you need to send to the probate registry to issue the grant does not mean HMRC have processed your IHT return. Nothing is approved at that stage.
    Daughter born January 2012 Son born February 2014

    Slimming World ~ trying to get back on the wagon...
    • getmore4less
    • By getmore4less 13th Sep 17, 5:39 PM
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    getmore4less
    • #6
    • 13th Sep 17, 5:39 PM
    • #6
    • 13th Sep 17, 5:39 PM
    If there has been no IHT they may never ascertain the value till something else triggers like the CGT return.

    450k would have been an educated guess 30k difference 9 month later is a tiny difference.
    • Yorkshireman99
    • By Yorkshireman99 13th Sep 17, 6:06 PM
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    Yorkshireman99
    • #7
    • 13th Sep 17, 6:06 PM
    • #7
    • 13th Sep 17, 6:06 PM
    Like I said yesterday on another thread, sending back the receipt that you need to send to the probate registry to issue the grant does not mean HMRC have processed your IHT return. Nothing is approved at that stage.
    Originally posted by Crabapple
    How can that be so. Surely HMR&C must be satisfied with the figures otherwise they would not approve them? Just curious how this can be.
    • Crabapple
    • By Crabapple 13th Sep 17, 6:14 PM
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    Crabapple
    • #8
    • 13th Sep 17, 6:14 PM
    • #8
    • 13th Sep 17, 6:14 PM
    The receipt is not approval. It just confirms they have the account and whatever tax you have paid.

    This allows the executors to apply for the grant.

    Approval of the figures comes (much) later when HMRC have been through the account.
    Daughter born January 2012 Son born February 2014

    Slimming World ~ trying to get back on the wagon...
    • Yorkshireman99
    • By Yorkshireman99 13th Sep 17, 6:18 PM
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    Yorkshireman99
    • #9
    • 13th Sep 17, 6:18 PM
    • #9
    • 13th Sep 17, 6:18 PM
    That sounds highly unlikely.
    • Crabapple
    • By Crabapple 13th Sep 17, 6:45 PM
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    Crabapple
    Well, it's been the procedure for many years, however unlikely you may think it to be.
    Daughter born January 2012 Son born February 2014

    Slimming World ~ trying to get back on the wagon...
    • Yorkshireman99
    • By Yorkshireman99 13th Sep 17, 6:58 PM
    • 2,950 Posts
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    Yorkshireman99
    So you are saying that HMR&C pass the return and payment without checking it first?
    • Tom99
    • By Tom99 13th Sep 17, 7:11 PM
    • 111 Posts
    • 41 Thanks
    Tom99
    The Inheritance Tax office will allow probate to be granted before confirming whether they are happy with the property valuation.

    If inheritance tax is due they will refer the value to the Valuation Office which may take some months.

    You need to ask the Inheritance Tax office for confirmation that they are happy with all the figures provided and that all due Inheritance Tax has been paid.

    If the estate then sells the property for a higher value CGT will be due on the difference in value but there are allowances to set off against CGT.

    If CGT is payable and there is more than one beneficiary then consider transferring the beneficial interest in the property to the beneficiaries before it is sold. That way each beneficiary will get a £11,300 allowance.
    • Crabapple
    • By Crabapple 13th Sep 17, 7:29 PM
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    Crabapple
    So you are saying that HMR&C pass the return and payment without checking it first?
    Originally posted by Yorkshireman99
    No, I'm saying they don't 'pass' the return or check it until much later. They just confirm they have it which allows probate to be granted.
    Daughter born January 2012 Son born February 2014

    Slimming World ~ trying to get back on the wagon...
    • EasySolution
    • By EasySolution 14th Sep 17, 5:36 PM
    • 29 Posts
    • 20 Thanks
    EasySolution
    when a solicitor or other professional is administering a Probate they ask HMRC for a Clearance Certificate before they distribute the estate.
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