Probate valuations and capital gains tax

Tom99

sarahs999 wrote: »

Thanks - but presumably this is somewhat dodgy not to declare. You'll have to forgive me, I have no experience in this field.

The Land Reg average price fell slightly from Dec 2018 to March 2019 and unless there is evidence that prices are obviously rising fast in your locality your case that the estate agents undervalued the property seems perfectly reasonable.

00ec25

Tom99 wrote: »

The Land Reg average price fell slightly from Dec 2018 to March 2019 and unless there is evidence that prices are obviously rising fast in your locality your case that the estate agents undervalued the property seems perfectly reasonable.

any particular reason you have ignored Stoner v Inland Revenue ?

getmore4less

00ec25 wrote: »

you will struggle to get HMRC to accept the substitution of the sales value for the original probate value


there is actually case law around just such an event and it decided that upwards valuations are not allowed where no inheritance tax was originally paid - ie as already mentioned the value was not "ascertained" for probate purposes


see Stoner v Inland Revenue
https://library.croneri.co.uk/cch_uk/btcbin/2001-spc-288

00ec25 wrote: »

any particular reason you have ignored Stoner v Inland Revenue ?

That link is to a subscription only part of the site for me.

This one may work
https://library.croneri.co.uk/cch_uk/btc/2001-spc-288

Tom99

00ec25 wrote: »

any particular reason you have ignored Stoner v Inland Revenue ?

Stonor says to OP cannot substitute a higher probate value because there is no IHT involved. The OP does not need to go back and substitute a higher probate value. According to HMRC IHT Manual:

'When denying the claim, you should tell the person making the claim that this office has not considered the value of the relevant interests in land at the date of death for Inheritance Tax purposes. Accordingly the value has not been ascertained within the meaning of TCGA92/S274 and for Capital Gains Tax purposes they must calculate the chargeable gain on the disposal using the market value at the date of death'

Note it does not say they must use the submitted probate value, so if the submitted probate value was not the open market value then the taxpayer can use a higher open market value for the purposes of CGT.