Amending probate value? House damaged during administration period before valuation

Loxodonta

Hello, my first post here. I have not needed to post before because I have gained so much useful information from this forum during the two years since my Dad's death. Thank you to all those who have posted the information that has helped me navigate what needed to de done post death and to obtain probate (Letters of Administration in our case). But I've now hit a problem.

Due to various reasons, my brother and I (we are the only beneficiaries and the only administrators) did not get the house valued for probate until five months after my Dad died. We decided to get a RICS red book valuation so that the value could be backdated to the date of death. Unfortunately, four days before the RICS surveyor arrived in January, we discovered that a pipe  had frozen and burst in the loft (despite the central heating being left on 24/7) - water was cascading through what was left of the kitchen ceiling. My brother had visited the house to do a check a few days prior to this and everything was in order.

The RICS valuation was quite a bit lower than I was expecting. I did query it, but he said that he could only value the house as he saw it (with the water damage). I used this figure on the IHT400 and for probate. We needed to submit the IHT400 because we were claiming RNRBs, even though no inheritance tax was due.

Fortunately the damage was covered by the house insurance, the insurers completed the repairs, but this took over a year. We have now put the house up for sale, accepted an offer, but are now faced with a large capital gain (about 65K) due to the low probate valuation. Is there any way that the probate valuation can be amended, given that this value was based on the water damaged house at the date of death. The house was not in the condition that it was on the date of death, the water damage took place five months later. I think the claim value was about 60K (need to check with insurer). Given that this was the cost to return the house to its original condition before the water damage, can this value (or at least part of it) be added to the submitted probate valuation to reflect the true condition at the date of death?

Would the probate value have been "ascertained"? I had to submit an IHT400 even though no inheritance tax was due. If the insurance claim value is added to the probate valuation, the value of the estate would still be under the inheritance tax threshold.

user1977

The valuation should be as at the date of death - surveyors ought to be used to doing retrospective valuations so I wouldn't have thought it too tricky for them to come up with a figure for what it was worth pre-flood. I wouldn't say it's necessarily going to be as big a difference as the cost of repair.

poseidon1

I am  little confused here about the time line. You say it is around 2 years since your father's death ( 2023?).

 Notwithstanding what you say about the circumstances surrounding the valuation, is it not possible the house would have experienced a certain degree of capital appreciation regardless, over that time period?

Would also help to know the numbers. A £500k valuation ( for example) leading to an eventual £565k sale is qualatively different from say a £200k valuation followed by a £265k sale.

In any event, if you check Rightmove sold prices for comparable homes on the street ( and adjoining streets) a few months either side of your father's death  what kind of average do you get compared to the valuation?

If you wish to depart from the formal valuation for CGT reporting purposes, you will need some solid supporting data.

NorthYorkie

The figure used for probate (or even IHT if applicable) is not necessarily binding for Capital Gains Tax purposes. Strictly, the value must have been 'ascertained' for IHT in order to be binding for CGT - see CG16251 - Assets: checking valuations: value ascertained for probate - HMRC internal manual - GOV.UK If there was no IHT liability on the estate, then the value will not have been 'ascertained' because it would be an excepted estate, so you can use a revised figure as the base cost of the property for CGT purposes. It may have to be justified by negotiation with the Revnue/Valuation Office.

Loxodonta

Thanks for your replies. My Dad died in August 2023, the probate valuation took place five months later in January 2024 (four days after water damage). Yes, I would expect an uplift in value over two years and, therefore, a capital gain, but not that much. The RICS valuation was 425K. In October 2025 we got 4 estate agent valuations, two at 500K and two at 550K, which we were surprised at. We put it on the market for 500K and accepted an offer of 490K.

The RICS report from 2023 included sold prices from 4 houses in the area for comparison (sold between March and November 2023). The only house listed in the same road was the house next door which sold for 450K 5 months before my Dad died. It's a smaller property (2 bed vs. 3 bed). It was in slightly better condition than my Dad's (which needed complete modernisation), but was not great and had been unoccupied for several years before sale. Not mentioned for comparison in the report were two further properties in the same road which sold for 530K (2 bed) and 625K (4 bed) in October 2023 and November 2023 respectively. Both were in better condition than my Dad's.

Re: CG16251 - value ascertained for probate. I have read this, but I did read somewhere else that even if there is no inheritance tax liability, the fact that the IHT400 has been submitted (it was required) means that the value has been "ascertained"?

mybestattempt

Loxodonta said:

Thanks for your replies. My Dad died in August 2023, the probate valuation took place five months later in January 2024 (four days after water damage). Yes, I would expect an uplift in value over two years and, therefore, a capital gain, but not that much. The RICS valuation was 425K. In October 2025 we got 4 estate agent valuations, two at 500K and two at 550K, which we were surprised at. We put it on the market for 500K and accepted an offer of 490K.

The RICS report from 2023 included sold prices from 4 houses in the area for comparison (sold between March and November 2023). The only house listed in the same road was the house next door which sold for 450K 5 months before my Dad died. It's a smaller property (2 bed vs. 3 bed). It was in slightly better condition than my Dad's (which needed complete modernisation), but was not great and had been unoccupied for several years before sale. Not mentioned for comparison in the report were two further properties in the same road which sold for 530K (2 bed) and 625K (4 bed) in October 2023 and November 2023 respectively. Both were in better condition than my Dad's.

Re: CG16251 - value ascertained for probate. I have read this, but I did read somewhere else that even if there is no inheritance tax liability, the fact that the IHT400 has been submitted (it was required) means that the value has been "ascertained"?

I think it's unlikely, although an IHT 400 was submitted, that the date of death value has been ascertained if there was no IHT charge:

https://www.gov.uk/hmrc-internal-manuals/capital-gs-manual/cg32224


In any event, it seems a CGT computation using a date of death valuation will be checked by HMRC and will referred to the VOA if it was not ascertained.

I'm very surprised a RICS valuation at date of death (that is without the later water damage) could not be provided. 

If the date of death valuation is referred by HMRC to the VOA then that's what the VOA RICS surveyor would be providing.

Loxodonta

What if we now got another RICS survey for date of death? If the valuation is higher than the previous RICS valuation, could we submit a CG34 (post transaction valuation check) to HMRC? 

mybestattempt

Loxodonta said:

What if we now got another RICS survey for date of death? If the valuation is higher than the previous RICS valuation, could we submit a CG34 (post transaction valuation check) to HMRC? 

As you can't have confidence in the original valuation it would make sense to get another RICS valuation and ensure your instructions this time are clear, you require a date of death valuation.

You cannot ask for a post transaction valuation check until after sale of the property completes.

As you will be required to make the capital gains report within 60 days of completion asking for a post transaction valuation check would, in my view, be an unnecessary step given the date of death valuation will be checked then and you will have the new RICS valuation to support your computation of the capital gain.