Repairs on inherited / probate property

GreggsCoffee

Hello,

Apologies if this has been asked before, I couldn't find a concrete answer. When inheriting a property that needs significant repairs (damp and electrical), can these expenses be claimed from the estate therefore reducing the inheritance tax liability?

Thanks.

p00hsticks

I'm not an expert but I don't believe so. 
 
My understanding is that for probate purposes you should be valuing the property (and any other assets) as at the time of death, so the valuation would therefore reflect the fact that the property was in a poor state of repair. 

Note that if it is the beneficiaries intention to sell the property rather than live in it, if the repairs are done prior to the sale then it could possibly result in a potential CGT liability if the selling price is over that  declared at probate, so the usual recommendation on here providing the property is in a good enough state to be mortgageable is to simply to sell it as a 'doer-upper' rather than spend time, money and effort on it. 

Hoenir

No. There's no obligation to retain the property. Could simply be sold as is. 

Keep_pedalling

IHT is based on the value of the  at the time of death, what you do with it after that makes no difference. 

GreggsCoffee

Thanks for all the replies. That makes sense!