Reduce CGT on inherited house by transfer to other family to use their allowance

Keep_pedalling

The higher value supplied by the surveyor, assuming this was a RICS surveyer was the valuation to use, as it would have been the most accurate and pretty safe from an HMRC challenge.

If I was in your position I would go back to HMCR with that higher valuation and pay the additional IHT. The alternative strategy will be to sit it out to see if you get away with it or end up still having to pay it plus a hefty fine on top.

troubleinparadise

Benawhile: I do not understand whether the sale we are planning as soon as convenient, hopefully around the summer, will be automatically flagged to IHT or not.

When the sale of the house is declared on a tax return/s as the disposal of a capital asset, the acceptance by HMRC of the declared value of the house and the completion statement from the conveyancing solicitors will flag the amount of increase in value, and link the tax history of this house for HMRC's attention.

An increase of £100k in 4 months would very possibly flag up a potential query ....

benawhile

I will call them tomorrow and post any interesting outcomes

benawhile

I called IHT help centre and they said to write with all the valuation info I had and recalculate a value myself. I ended up adding another £40,000. I'm also sending them the Chartered Surveyors report and valuation. They said it will go to the district valuer anyway. So that's it for now. Wait and see. Thanks for help. Original query remains but not so crucial with more IHT/less CGT.