Capital Gains Tax on Inherited Vehicle?

poolcue

I recently inherited a vehicle from my late Father. I subsequently obtained a valuation to allow its inclusion in the estate for Inheritance Tax purposes.

My question is, if I sell the vehicle for more than the submitted valuation, would I then be liable for Capital Gains Tax on the 'profit' (ie. the difference between the sale price and the submitted valuation)?

If so, if the difference is less than my annual allowance (£12k I believe), do I still need to declare it?

Thanks all.

Keep_pedalling

No because cars are not subject CGT gains, which is a pity because we would all be able to offset the losses most cars suffer against our other gains.

The difference might however be subject to IHT because the original estimate you submitted was too low.

poolcue

Thanks for the reply.

If that is the case, how would I submit any 'profit' to HMRC for consideration? I'm an employee, so don't complete a self-assessment.

BoGoF

poolcue wrote: »

Thanks for the reply.

If that is the case, how would I submit any 'profit' to HMRC for consideration? I'm an employee, so don't complete a self-assessment.

I think the point Keep pedalling was making is the IHT valuation accurate? If so, why would you expect to make a profit. How was it valued for IHT purposes? If it is undervalued the IHT return would need to be amended.

poolcue

I used webuyanycar.com. Local dealers were reluctant to put any valuation in writing, where it's not a part-exchange. Ultimately, I want to pay what's due, I just don't want to pay twice.

laidbackgjr

How much 'profit' are you thinking about - if it's a few hundred quid I wouldn't worry about it - HMRC are unlikely to come chasing for the extra IHT due to the valuation being slightly low. - if it's many thousands (a rare classic car for example) - then you would be best off updating the IHT submission with a higher valuation in line with what the car actually sold for.

badger09

Did your late father's estate attract IHT?

Are you actually going to sell it?

If so, what makes you think it will sell for more than the value you gave for IHT?

If the answer to the 1st question is no, then forget about it.