capital gains tax

NordicNoir

g6jns wrote: »

Thanks for that. Reading the thread again it seems the executors/PRS sold the house before probate and undervalued it. Surely the execs are responsible for any losses the beneficiaries incur because of their actions? The beneficiaries were not involved in any way nor did they authorise the execs to act on their behalf. It would be quite inequitable for the beneficiries to be penalised for something they have zero responsibility for.

It looks like they accepted an offer before probate, but the sale would not have been able to happen until probate was granted.

It does look like they undervalued the house for probate but that is not the end of the world, as long as they use a correct value when calculating the CGT. Hopefully, that will result in little or no CGT being due.

If the PR's go ahead with the incorrect valuations, knowing them to be incorrect, they will have acted against the beneficiaries interest and could be held accountable for the shortfall. At this stage though, this is all still correctable, but they do need to act!

The one thing that does not change is the fact that the PR's accepted a low cash offer, rather than higher non cash offers. This is not unusual, but normally all of the beneficiaries would agree to it as they would be giving up some of their inheritance. The OP will need to decide how he wants to progress with that issue. If it can be proved that higher offers were rejected, the PR's may agree to reduce their "cut" so that the other beneficiaries get the correct amount. Otherwise, the OP only really has the legal route to go and there would be costs involved and possible repercussions within the family. That decision would need to be made very carefully.

G6JNS

MichelleUK wrote: »

It looks like they accepted an offer before probate, but the sale would not have been able to happen until probate was granted.

It does look like they undervalued the house for probate but that is not the end of the world, as long as they use a correct value when calculating the CGT. Hopefully, that will result in little or no CGT being due.

If the PR's go ahead with the incorrect valuations, knowing them to be incorrect, they will have acted against the beneficiaries interest and could be held accountable for the shortfall. At this stage though, this is all still correctable, but they do need to act!

The one thing that does not change is the fact that the PR's accepted a low cash offer, rather than higher non cash offers. This is not unusual, but normally all of the beneficiaries would agree to it as they would be giving up some of their inheritance. The OP will need to decide how he wants to progress with that issue. If it can be proved that higher offers were rejected, the PR's may agree to reduce their "cut" so that the other beneficiaries get the correct amount. Otherwise, the OP only really has the legal route to go and there would be costs involved and possible repercussions within the family. That decision would need to be made very carefully.

Thanks for confirming my understanding of the situation. The OP certainly needs to be strong minded and make it clear to the execs they have to act.

charlie2015

thanks everyone for your help . the PRS have made all these decisions there selves the 3 boys have had no input whatsoever. they will deny there were higher offers . I think I will have to engage a solicitor and contact HMRC who first? they would not listen to anything you tried to tell them