House sold for more than probate valuation - self assessment query

Treetops66

Hi, I'm executor and beneficiary with my brother for my mother's estate. The house was sold  just over a month after probate for £61K above the probate valuation. I'm assuming HM Revenue will be aware of this and we don't have to notify anyone?

From reading previous posts I gather CGT will apply on the excess. I work part time so don't pay tax and therefore don't fill in a tax assessment but I assume this year I will have to as my share of the house sale will be classed as income? Is that correct? Thanks

noh

Was the estate subject to IHT?
Would the £61k if added to the estate value be subject to IHT?

Keep_pedalling

If, as it sounds like, you sold the house within the estate then it is the estate that owes any CGT not you and your brother, so you don’t need to do a personal return. CGT on property needs to be paid within 30 days of the sale, and HMRC will not be automatically aware of it so it is down to the executors to notify HMRC of the gain.

Unfortunately it is not that straight forward, and if you undervalued the property on the IHT forms you could be looking at a correction to IHT rather than CGT. 

What was the net value of the estate declared on IHT 205 / 400? How long passed between obtaining probate and completion of the house sale? How did you obtain the valuation for probate?