An error on inherited property value leads to owing CGT

NordicNoir

Dastep,

My previous post was really in answer to wyliam's post, so I did not go into the specifics of your situation, as it appeared that getmore4less had come up with a way forward for you already.

There is a similar thread that I have responded to that should clarify matters for you:

https://forums.moneysavingexpert.com/discussion/5198935

Have a read of this and it should help you to see a way forward, let me know if you have any questions!

Basically, it is possible to use a different valuation for calculating CGT to that used in the Probate forms, if the probate valuation proves to be incorrect. A relatively simple way of finding out the valuation is to complete a form CG34 and ask HMRC what they consider the value at the date of death to be. You can include on the form all of the details regarding the lease term etc, i.e. anything that will have an impact on the valuation.

Hopefully, once you have the correct valuation, there will be no CGT to pay.

dastep

MichelleUK,

Thank you so much for posting the link. I will follow it and pass this information to my brother-in-law. Lord willing, we can get some satisfaction?

NordicNoir

wyliam wrote: »

Thanks MichelleUK;
I cannot see from the information given; who it is that made the capital gain. Is it the deceased's estate or is it the beneficiaries?
If it is the three beneficiaries, then their combined Annual Exempt Amount is 3 x £11,000 which exceeds the £25,000 (less expenses) capital gain. Hence no CGT to pay.

Wyliam,

Whether the estate or the beneficiaries are subject to the CGT depends on whether it is considered that the residue of the estate has been "ascertained". This can be quite difficult to discover and I have commented on it previously on another thread:

https://forums.moneysavingexpert.com/discussion/5198935

Hopefully, that thread should clarify things a little!