When should CGT be paid?

hkymre

The solicitor handling the estate of my wife's late aunt sold the house last May.
The funds were distributed soon afterwards.

Some money was held back by them to cover the CGT on the sale.
we've chased them & have now been it will take 8-12 weeks to conclude the arrangements with HMRC.

It shouldn't take over 13 months, should it?

Hoenir

The CGT was most likely been paid a long time ago. Did the HMRC raise a query? 

Keep_pedalling

CGT has to be paid within 60 days of the sale of a residential property.

hkymre

The update we received today states

The accountant estimates that it would be between 8 & 12 weeks to conclude the CGT

Based on that I don’t believe they’ve paid it yet.

Dazed_and_C0nfused

hkymre said:

The solicitor handling the estate of my wife's late aunt sold the house last May.
The funds were distributed soon afterwards.

Some money was held back by them to cover the CGT on the sale.
we've chased them & have now been it will take 8-12 weeks to conclude the arrangements with HMRC.

It shouldn't take over 13 months, should it?

Is the solicitor aware of the rules about CGT reporting 😳

https://www.gov.uk/probate-estate/managing-and-selling-assets

Hoenir

hkymre said:

The update we received today states

The accountant estimates that it would be between 8 & 12 weeks to conclude the CGT

Based on that I don’t believe they’ve paid it yet.

HMRC have to accept the submission. Conclude suggests there's an ongoing matter. Did the Estate incur IHT ? 

hkymre

Hoenir said:

hkymre said:

The update we received today states

The accountant estimates that it would be between 8 & 12 weeks to conclude the CGT

Based on that I don’t believe they’ve paid it yet.

HMRC have to accept the submission. Conclude suggests there's an ongoing matter. Did the Estate incur IHT ? 

There was IHT on the estate.

 Probate was granted in August 2022.
£50000 was sent to HMRC to settle the 5k IHT bill around August 2022. 

HMRC forgot to return the 44k & the solicitor appeared to forget to ask for it back until we started chasing it.
Eventually it was returned & distributed but we have not been made aware of any ongoing issues with HMRC

Keep_pedalling

What was the house valued at for the IHT return and how much did it sell for?

hkymre

Keep_pedalling said:

What was the house valued at for the IHT return and how much did it sell for?

The valuation was 275,000 & it sold for 325,000

Hoenir

hkymre said:

Keep_pedalling said:

What was the house valued at for the IHT return and how much did it sell for?

The valuation was 275,000 & it sold for 325,000

 18% is a considerable under valuation for probate. 

pjs493

Hoenir said:

hkymre said:

Keep_pedalling said:

What was the house valued at for the IHT return and how much did it sell for?

The valuation was 275,000 & it sold for 325,000

 18% is a considerable under valuation for probate. 

Could just be a COVID related anomaly perhaps? depending on the area. I know a few rural houses that had values shoot up when people decided to exodus from cities.