Property sells for more than RICS valuation

BasilTheRat

Hi there

Some advice....

Property has been valued at 220k. We believe it is likely to sell for more given locale and other factors.

What happens if it sells for more than 220k when the time comes? Estate will be below IHT threshold anyway, as have RNRB to increase to 500k but we are unsure whether selling for more would count as CGT and if we would owe money....

Thanks

Mark_d

Estate will be below IHT threshold....so why do you think you would need to pay CGT?  If you're scared of making too much money, I'm accepting donations.

Keep_pedalling

To be on the safe side I would over estimate the value to avoid a CGT liability. If you are no where near having to pay IHT then no need to pay for a RICS valuation, use 3 estate agents and go with the highest valuation.

BasilTheRat

Thanks both

I guess what we need to know is whether in the event of it selling for closer to Zoopla estimate of circa 280k, whether HMRC would count that as within the 500k OR if they would view it as CG 

We have a RICS valuation but concerned it is way below what it would fetch...don't want to risk affecting the legacy mum worked so hard to pass on to her family and trying to do best.

Also don't want to fall foul of rules. Given we have RICS valuation presuming we have to disclose that to HMRC rather than going with an estate agent...

Keep_pedalling

You don’t have to disclose that to HMRC. I would get some estate agent valuations as well to see if your suspicions are correct. Her estate is well under £500k so whatever valuation you use they are not going to challenge it. 

mybestattempt

BasilTheRat said:

Thanks both

I guess what we need to know is whether in the event of it selling for closer to Zoopla estimate of circa 280k, whether HMRC would count that as within the 500k OR if they would view it as CG 

We have a RICS valuation but concerned it is way below what it would fetch...don't want to risk affecting the legacy mum worked so hard to pass on to her family and trying to do best.

Also don't want to fall foul of rules. Given we have RICS valuation presuming we have to disclose that to HMRC rather than going with an estate agent...

This what the HMRC guidance says about the date of death (probate) value applying for both IHT and CGT:

https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg32210

and this is what it says about valuation for excepted estates:

https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm06033

So, it makes sense to follow the advice @Keep_pedalling has given.