CGT on inherited property sale

ceeforcat

No problem - it takes a bigger man (woman?) to apologise and admit their error - well done - you have my respect.

John_Pierpoint

jimmo wrote: »

That is only true if the probate value has been "ascertained".
That is where the probate value has been accepted by HMRC and Inheritance Tax has been paid.
http://www.hmrc.gov.uk/manuals/cgmanual/CG32224.htm
If a person died today and his estate consisted of £20,000 cash plus a house then Inheritance Tax would only be payable if the house was worth more than £305,000.
If the person who applies for probate can reasonably estimate that the house is worth something between £200k and £250k he may consider it sensible to declare the value of the house to be £250k, or maybe a bit more. After all, no IHT would be payable and there is little practical point in paying for a professional valuation.
In my days at HMRC, capital gains computations based on unascertained probate valuations were like manna from heaven because it was virtually certain that the probate value had been overstated.

So what happened next?

The VOA (District valuer) popped round to take a look at the now restored house and asked the (say) tenants what it was like inside X years ago, when its elderly owner died?

I ask just for the benefit of executors selling modestly priced homes, not those inside the M25.

adonis10

00ec25 wrote: »

I assume MV of 150 is the figure you used in the probate declaration otherwise your "cost" is not 150k, it would be whatever was the probate value

Yes, as per estate agents' valuations.

jimmo

John_Pierpoint wrote: »

So what happened next?

The VOA (District valuer) popped round to take a look at the now restored house and asked the (say) tenants what it was like inside X years ago, when its elderly owner died?

I ask just for the benefit of executors selling modestly priced homes, not those inside the M25.

By the time the District Valuer would need to enter formal negotiations a lot of information will have already been gathered by HMRC. e.g.
http://www.hmrc.gov.uk/manuals/cgmanual/CG74365.htm