House sale pushes estate over IHT threshold.

Sherbster19

We had our mums property valued for probate & used it to work out if we were liable for IHT. Probate was applied for & given. We are now about to market the property and it is expected to sell for £20K more than the first valuation. It was done by 3 different estate agents who gave the same figure. There has been only two months between valuations. Even with deductions for estate agents commission & conveyancing fees the total estate will now go over the limit. We could have applied for the additional nil rate band as our father died in '94 leaving his entire estate to his wife. Can we apply for it retrospectively? Or what can be done.
Thanks for help.

wwl

Probably best to contact HMRC on the specific issue of retrospectively claiming nil rate band.
However the problem is that unless HMRC are also prepared to accept an increase in IHT valuation, there may be CGT payable on the increase, though the rate is a bit lowere and there is an allowance.

And bear in mind it hasn't sold yet. By the time it does chances are it'll be at least a month or two later, and you don't know it will sell for what they are currently valuing it at.

getmore4less

Sherbster19 wrote: »

We had our mums property valued for probate & used it to work out if we were liable for IHT. Probate was applied for & given. We are now about to market the property and it is expected to sell for £20K more than the first valuation. It was done by 3 different estate agents who gave the same figure. There has been only two months between valuations. Even with deductions for estate agents commission & conveyancing fees the total estate will now go over the limit. We could have applied for the additional nil rate band as our father died in '94 leaving his entire estate to his wife. Can we apply for it retrospectively? Or what can be done.
Thanks for help.

These are not deductible for IHT purposes only future CGT.

The value of the property needs to be ascertained(look it up) for any IHT/CGT situation, the value on the form is just an estimate till that is done

if you need to amend the valuation for IHT then review the process, as when there is still no IHT to pay if you can claim the transferable nil rate band at the same time it may not be straight forward.

One for a call to HMRC, a tax experts, a google on modifying a capital return, might need all.

a search of the HMRC IHT manual might find something relevant.
google with HMRC IHT as the first two terms.

g6jns_2

Sherbster19 wrote: »

We had our mums property valued for probate & used it to work out if we were liable for IHT. Probate was applied for & given. We are now about to market the property and it is expected to sell for £20K more than the first valuation. It was done by 3 different estate agents who gave the same figure. There has been only two months between valuations. Even with deductions for estate agents commission & conveyancing fees the total estate will now go over the limit. We could have applied for the additional nil rate band as our father died in '94 leaving his entire estate to his wife. Can we apply for it retrospectively? Or what can be done.
Thanks for help.

Don't rely on advice just from here. Find a solicitor with expertise in this field. The fee of a few hundred pounds should be more than saved by the advice you get.

Sherbster19

Thanks for the input.
Reading the gov.uk/inheritancetax website all has been made plain.
There is always an answer if you look for it!