capital gains tax

charlie2015

one of the executors is a beneficerie the house was sold by both executors who are husband and wife the other beneficeries had no involvement with selling the house

Crabapple

Given the dates the proper thing to do would be to go back to HMRC with the correct value of the property and try and get that value agreed for IHT.

The only reason I can think of that the correct figure wasn't given at the time is someone couldn't be bothered to amend the paperwork before it was signed. Not good enough frankly, especially as they should have known that there would be a potential CGT issue created after the event.

I guess it may come down to whether it was better value to pay some IHT (assuming there were assets other than the house and therefore it would have gone over the threshold) or potentially cover the difference with the beneficiaries using their CGT allowances. They should have checked though that it would be possible - some or all of the beneficiaries might already have used their allowance for the year.

It's only necessary to put together a memorandum to notionally sell on behalf of the beneficiaries to use their allowances, not transfer the house to them first.

In any event, any taxes due come from the Estate funds, not the beneficiaries personally. The Executors are responsible not only for submitting correct information to HMRC but also acting in the best interests of the beneficiaries.

getmore4less

HMRC make it fairly clear if no IHT implications then they are not interested.

Any other assets in the estate?

G6JNS

charlie2015 wrote: »

when I queried with solicitor why the PRS did not inform HMRC of true figure . he told me that once probate had started the sum could not be changed . this did not make sense to me as I would have thought it would have better to keep HMRC informed .I am not sure he is telling me the truth . as he is acting for the PRS and was involved with probate should I contact HMRC with my information many thanks for replys

He is telling porkies! How could the PR's sell the house before probate? The whole story stinks as far as the PR's are concerned.

charlie2015

the PRS sold the house in a private sale for £625000 took it off estate agents books and looks like they rushed through probate my fathers assets were about £4000 the whole transaction is very shady and we were not properly informed

Keep_pedalling

charlie2015 wrote: »

the PRS sold the house in a private sale for £625000 took it off estate agents books and looks like they rushed through probate my fathers assets were about £4000 the whole transaction is very shady and we were not properly informed

This definitely smells of old fish, how much did the EA have it on the market for?

charlie2015

the EA had house on market for £650000 the house was valued at £554000 gross and £550000 net for probate if they could not be bothered to revalue probate forms who is at fault? many thanks for replys

G6JNS

charlie2015 wrote: »

the EA had house on market for £650000 the house was valued at £554000 gross and £550000 net for probate if they could not be bothered to revalue probate forms who is at fault? many thanks for replys

If the executors sold the property for less than the open market value then they are legally liable to the beneficiaries for the shortfall.

NordicNoir

charlie2015 wrote: »

the EA had house on market for £650000 the house was valued at £554000 gross and £550000 net for probate if they could not be bothered to revalue probate forms who is at fault? many thanks for replys

What was the date that your father died? Without this information we can not really provide anything useful.

The probate figure is the value at the time of death, not the ultimate sale price. If for example, your father died 24 months ago and the house is in London, it could be quite feasible that the figure used for probate is reasonable. If the house was put on the market before probate was granted, the PR's would then have to rush the probate through to be able to finalise the sale.

charlie2015

my father died on the 17.2.14 house put on market early april mid april sold to a private buyer 1st week in may. my sister told me they had better offers than £625000 but they had gone for cash offer. I am beginning to think they rushed probate and did not revalue. what I cannot understand why the solicitor sat there and let this go on who is liable here