probate property valuation less than current estate agent valuation

charb56

can anyone advise, my late brothers property was given a formal RICS valuation from a reliable company of £450,000 9 months ago. we have now received probate grant and have started getting valuations from estate agents to look at selling the property in the near future which are coming in around £30-50,000 higher- we don't know if the actual selling price would end up lower and it is in an area of greater London where prices have risen. would this be subject to an HMRC enquiry if the selling price was a lot more , and is there any kind of time factor in this, say, if we kept the property for a year or two and then it sold at a higher price?

Yorkshireman99

charb56 wrote: »

can anyone advise, my late brothers property was given a formal RICS valuation from a reliable company of £450,000 9 months ago. we have now received probate grant and have started getting valuations from estate agents to look at selling the property in the near future which are coming in around £30-50,000 higher- we don't know if the actual selling price would end up lower and it is in an area of greater London where prices have risen. would this be subject to an HMRC enquiry if the selling price was a lot more , and is there any kind of time factor in this, say, if we kept the property for a year or two and then it sold at a higher price?

If you have probate then HMR&C have accepted the valuation at the date of death. Any gain above that may be subject to CGT less any allowances. You might want to discuss it with the valuer.

Crabapple

It depends whether HMRC have agreed the valuation or not. They may investigate property values but if they query it then you should refer back to the surveyor to explain.

If there is a post death increase in value then you need to look at whether there is a CGT liability.

Having the grant of probate does not mean HMRC have looked at or agreed the value.

Yorkshireman99

Crabapple wrote: »

It depends whether HMRC have agreed the valuation or not. They may investigate property values but if they query it then you should refer back to the surveyor to explain.

If there is a post death increase in value then you need to look at whether there is a CGT liability.

Having the grant of probate does not mean HMRC have looked at or agreed the value.

Surely the clearing of probate by HMR&C means they HAVE accepted the value? At that that sort of value they would almost certainly involved the District Valuer. I don't see how they can have it both ways.

Crabapple

Like I said yesterday on another thread, sending back the receipt that you need to send to the probate registry to issue the grant does not mean HMRC have processed your IHT return. Nothing is approved at that stage.

getmore4less

If there has been no IHT they may never ascertain the value till something else triggers like the CGT return.

450k would have been an educated guess 30k difference 9 month later is a tiny difference.

Yorkshireman99

Crabapple wrote: »

Like I said yesterday on another thread, sending back the receipt that you need to send to the probate registry to issue the grant does not mean HMRC have processed your IHT return. Nothing is approved at that stage.

How can that be so. Surely HMR&C must be satisfied with the figures otherwise they would not approve them? Just curious how this can be.

Crabapple

The receipt is not approval. It just confirms they have the account and whatever tax you have paid.

This allows the executors to apply for the grant.

Approval of the figures comes (much) later when HMRC have been through the account.

Yorkshireman99

That sounds highly unlikely.

Crabapple

Well, it's been the procedure for many years, however unlikely you may think it to be.

Yorkshireman99

So you are saying that HMR&C pass the return and payment without checking it first?