IHT405 question - property value

bunnygo

hello all - I've searched the forum but can't find the answer, and can't get through to the helpline. It's box 12 of course.

inherited property to be sold once we have probate. Have RICS valuation.   No idea what carpets/curtains etc will be worth, obviously to be included. 

asking price will presumably be a bit more than valuation but no idea at this stage. Do I want to use the sale price as the value at date of death?

any advice from someone who did manage to get through would be much appreciated.

RAS

I doubt anyone would consider paying a separate sum for carpets unless they are very high quality, almost new and to the buyer's taste. Curtains maybe but not at anything like the purchase price.

Keep_pedalling

Have you had to pay IHT?

bunnygo

haven't submitted the forms yet but we are well below the £1m with 2 x NRB and 2 x RNRB (which is why the IHT forms have to go in, to claim them). So nothing will actually be payable.

Keep_pedalling

bunnygo said:

haven't submitted the forms yet but we are well below the £1m with 2 x NRB and 2 x RNRB (which is why the IHT forms have to go in, to claim them). So nothing will actually be payable.

If you can manage it without getting too near IHT territory I would go in with an overestimate to minimise the risk of a CGT liability on the sale. 

bunnygo

thanks - to check I understand, I put in a larger figure for the asking price in the full expectation that it will sell for less than that? 

the estate agent came up with a very similar to the RICS surveyor for what we should expect, but obviously suggests a higher asking price. That figure is still well below the IHT limit.

Keep_pedalling

bunnygo said:

thanks - to check I understand, I put in a larger figure for the asking price in the full expectation that it will sell for less than that? 

the estate agent came up with a very similar to the RICS surveyor for what we should expect, but obviously suggests a higher asking price. That figure is still well below the IHT limit.

In that case I would go with the likely asking price. If it sells  asking or a lower figure then no CGT liability, if you put in a figure lower than the asking price and it sells for more then the figure you use the there could be CGT to pay.

bunnygo

thank you - makes sense and will do!