House valuation for Confirmation purposes

jem16

I’ve had three estate agents out to give a valuation for Dad’s house as I’m executor of his estate. No IHT likely as he can use his own NRB plus his late wife’s.

The three valuations are £205k/£210k, £220k and £230k. We’re not doing the Home Report till at least the application for Confirmation is done so we know rough time frames. 

Obviously the higher valuation suits for possible CGT implications but would it be challenged later by HMRC?

Keep_pedalling

You won’t get challenged if you go with the upper value.

jem16

Keep_pedalling said:

You won’t get challenged if you go with the upper value.

Is it only challenged if a totally exaggerated valuation is used or is it because we can evidence being given by an estate agent?

Keep_pedalling

This will be looked at from the point of view of IHT rather than CGT and the values low so won’t trigger any sort of investigation. 

jem16

Keep_pedalling said:

This will be looked at from the point of view of IHT rather than CGT and the values low so won’t trigger any sort of investigation. 

Total value of the estate will be around the £600k mark even with the higher valuation so well within IHT thresholds using Mum’s allowances. 

user1977

They're all in the same ballpark so (unless they're all completely wrong) I very much doubt any of those figures could be challenged either way.

jem16

user1977 said:

They're all in the same ballpark so (unless they're all completely wrong) I very much doubt any of those figures could be challenged either way.

Desktop valuation done in April 2024 for Mum’s application was £200k so as you say all seem plausible. 

jem16

This may this may be a stupid question but my brother asked it so now got me doubting myself. 

Which figure is used for CGT calculations? Is it the valuation we put on the Confirmation application or is it the Home Report valuation which won’t be done for another couple of months or so?

buddy9

the value in the confirmation inventory

jem16

buddy9 said:

the value in the confirmation inventory

Thanks. It was what I thought but my brother asked why.