Probate Value Wrong well under IHT

rPH1984

I have received probate for a family member. It was applied for for £117k. As houses on the street had sold in 2021 for £90k, and there were £23k in bank accounts.

A house valuation has now been done as we received the probate. The value of the house is £110k. Meaning the estate is £133k. This is well under IHT, but will this cause a problem?

Thanks

Keep_pedalling

If the house is being sold then the original under valuation is going to cost the estate some capital gains tax on the £20k ‘gain’

bobster2

Keep_pedalling said:

If the house is being sold then the original under valuation is going to cost the estate some capital gains tax on the £20k ‘gain’

True but what matters will be the value at the point it is sold or ownership transferred.

So before potentially trying to revise the probate value, assuming you're planning to sell them it might be worth waiting to see what you get in the current difficult market.

E.g. if you end up getting only 105,000 that's a 15,000 gain but when you take away the annual CGT allowance (12,300) and solicitor + estate agent costs there may be no CGT due even with the low probate valuation.

rPH1984

Thanks. You have been helpful

getmore4less

If a CGT return is required an adjusted figure for value at DOD can be used as the probate value would not have been ascertained