How to amend probate values?

Ollie222

We've recently dealt with my late mother's estate and grant of probate has been issued.

The estate value is over the IHT threshold by a small amount however as everything passes to my father (her spouse) it's an excepted estate so there was no IHT to pay.

Since the grant was issued we've since discovered she was owed a small amount of money (£650) and also we've found an extra account we hadn't accounted for with a very small amount of money in it (less than £100).

This extra money will be passed to my father and would have no effect on any IHT tax due however do these changes need to be reported to HMRC and/or the Probate Office and if so how?

I can see there is a C4 form that can be filed for HMRC however this looks like it's the form to use when an IHT400 form has been completed however as it was an excepted estate this wasn't needed.

The probate office is closed for the weekend so I'll try and speak to them next week however in the meantime does anyone have any advice on what steps, if any, that we need to take next?

Keep_pedalling

No need to do anything, HMRC are not interested in excepted estates and there is no method of changing the probate value.

Ollie222

Keep_pedalling said:

No need to do anything, HMRC are not interested in excepted estates and there is no method of changing the probate value.

Thank you, that is obviously the perfect answer from our perspective.

numbersrule

Keep_pedalling said:

No need to do anything, HMRC are not interested in excepted estates and there is no method of changing the probate value.

This is interesting in relation to a different issue (apologies Ollie222 for hijacking your thread) that being CGT.

In the scenario where there is a Capital Gain during the Administration Period of an Excepted Estate, and given that you have implied that there is no need to amend the Probate Value, then supposing the Capital Gain is actually a result of an underestimated Probate Value?

Does that mean one can not bother amending the Probate Value whilst at the same time not declaring a CGT Liability because it wasn't really a Capital Gain even though one hasn't amended the Probate Value?

mybestattempt

numbersrule said:

Keep_pedalling said:

No need to do anything, HMRC are not interested in excepted estates and there is no method of changing the probate value.

This is interesting in relation to a different issue (apologies Ollie222 for hijacking your thread) that being CGT.

In the scenario where there is a Capital Gain during the Administration Period of an Excepted Estate, and given that you have implied that there is no need to amend the Probate Value, then supposing the Capital Gain is actually a result of an underestimated Probate Value?

Does that mean one can not bother amending the Probate Value whilst at the same time not declaring a CGT Liability because it wasn't really a Capital Gain even though one hasn't amended the Probate Value?

For excepted estates the date of death/probate value of the property is not "ascertained" for IHT purposes.

It will be determined when the capital gains tax computation based on a date of death/probate value is submitted to HMRC:

https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg16251

HMRC will ask the VOA to determine a date of death/probate value for the property:

https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg74050

numbersrule

Thank you mybestattempt.

That is most helpful.