We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Who sets the value of a house for IHT purposes?
mellizo
Posts: 7 Forumite
in Cutting tax
Who sets the value of a house for IHT purposes?
I have read that the executors must valuate an estate in case of death or transfer, and that includes the house. But how they do it? RICS Surveyors? Estate Agencies? Just guessing?
Obviously it makes sense to valuate a house at a minimum, so to avoid paying as much as possible, even skipping the IHT altogether. I assume that there is an HMRC office somewhere in charge of checking the values, Isn’t it?
What can you do to get the minimum valuation as possible?
I have read that the executors must valuate an estate in case of death or transfer, and that includes the house. But how they do it? RICS Surveyors? Estate Agencies? Just guessing?
Obviously it makes sense to valuate a house at a minimum, so to avoid paying as much as possible, even skipping the IHT altogether. I assume that there is an HMRC office somewhere in charge of checking the values, Isn’t it?
What can you do to get the minimum valuation as possible?
0
Comments
-
I assume that there is an HMRC office somewhere in charge of checking the values, Isn!!!8217;t it?What can you do to get the minimum valuation as possible?
have you heard of google? Isn't it useful:
https://www.gov.uk/valuing-estate-of-someone-who-died0 -
And google fraud while you're at it.0
-
Obviously it makes sense to valuate a house at a minimum, so to avoid paying as much as possible, even skipping the IHT altogether.
Not if the beneficiaries wish to sell the property without living in it themselves, as they'll potentially be liable for CGT on the differnece between the probate valuation and the price it actually sells for0 -
If the estate is in IHT territory or is close to being so, then a RICS surveyor should be used. If it is well under that then it is not so crucial for IHT purposes, but would still be useful for CGT purposes.0
-
p00hsticks wrote: »Not if the beneficiaries wish to sell the property without living in it themselves, as they'll potentially be liable for CGT on the differnece between the probate valuation and the price it actually sells for
If it is in IHT territory and assuming the beneficieny of the house is also in effect paying the IHT by getting less via the residue as residual beneficiary, then they will pay 40% IHT on any increased valuation over some "minimum valuation"
Alternatively they will pay CGT tax at 20% including in this the CGT tax free £11700 nil-band over this minimum valuation when they sell at a higher price sometime later.
This is all rather less than 40% IHT on everything paid now.
Which makes it tax-cheaper to get a minimum realistic valuation possible from the RICS surveyor if the house is not to be sold immediately.
If the beneficiary of the house is different to the residual beneficiary in the will then yes getting a higher IHT valuation price is the best to reduce future CGT as someone else will be paying the increased IHT that results.
All the above is very well known by all RICS surveyors when they are in discussions with Executors over exactly what value are they going to put on a house.0
This discussion has been closed.
Categories
- All Categories
- 345.8K Banking & Borrowing
- 251K Reduce Debt & Boost Income
- 451K Spending & Discounts
- 237.9K Work, Benefits & Business
- 612.7K Mortgages, Homes & Bills
- 174.3K Life & Family
- 251K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 15.1K Coronavirus Support Boards