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  • FIRST POST
    • Tom99
    • By Tom99 12th Mar 18, 8:44 AM
    • 2,070Posts
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    Tom99
    Property Value for IHT and CGT
    • #1
    • 12th Mar 18, 8:44 AM
    Property Value for IHT and CGT 12th Mar 18 at 8:44 AM
    I have now received an IHT30 Clearance Certificate and since the house sold for more than the agreed probate value ( one year on ) I will be preparing a CGT computation based on the gain of sale value over agreed probate value, less allowances.

    However at the bottom of the IHT30 Clearance Certificate is the statement:

    This certificate does not itself constitute a determination of values of individual items for any other HM Revenue & Customs purpose. In particular, the issue of the certificate does not necessarily mean that values have been “ascertained” or that values may be taken as market values for capital gains tax within the provisions of section 274 and paragraph 9, schedule 11,Taxation of Chargeable Gains Act 1992”

    So more out of interest than anything:-

    • If the Clearance Certificate has not 'ascertained' the house value how would I go about having the value 'ascertained'?
    • Once the value had been 'ascertained' would this value be more useful in any way than my current agree, but maybe un-ascertained, value?
    • In what circumstances would an acquisition market value for CGT be accepted as different to the agreed probate value and is that likely to be above or below the probate value?
Page 1
    • Keep pedalling
    • By Keep pedalling 12th Mar 18, 8:53 AM
    • 4,995 Posts
    • 5,559 Thanks
    Keep pedalling
    • #2
    • 12th Mar 18, 8:53 AM
    • #2
    • 12th Mar 18, 8:53 AM
    How was the value obtained for probate?

    In most areas house prices have not been dramatically increasing over the last 12 months, so HMRC could query the valuation which could add additional IHT to the tax bill rather than CGT
    • Tom99
    • By Tom99 12th Mar 18, 9:02 AM
    • 2,070 Posts
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    Tom99
    • #3
    • 12th Mar 18, 9:02 AM
    • #3
    • 12th Mar 18, 9:02 AM
    How was the value obtained for probate?

    In most areas house prices have not been dramatically increasing over the last 12 months, so HMRC could query the valuation which could add additional IHT to the tax bill rather than CGT
    Originally posted by Keep pedalling
    There was a 7% gain from mid 2016 to mid 2017 and the probate value was agreed by the VO. As well and the IHT30 Clearance Certificate I also have a clearance letter from the IHT Office which says 'we will not be making any further enquiries'
    So I am quite happy that the probate value is fixed but now have to deal with CGT.
    • getmore4less
    • By getmore4less 12th Mar 18, 9:31 AM
    • 32,035 Posts
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    getmore4less
    • #4
    • 12th Mar 18, 9:31 AM
    • #4
    • 12th Mar 18, 9:31 AM
    Was there IHT paid?
    • Tom99
    • By Tom99 12th Mar 18, 9:34 AM
    • 2,070 Posts
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    Tom99
    • #5
    • 12th Mar 18, 9:34 AM
    • #5
    • 12th Mar 18, 9:34 AM
    Was there IHT paid?
    Originally posted by getmore4less
    Yes £100k plus
    • getmore4less
    • By getmore4less 12th Mar 18, 9:45 AM
    • 32,035 Posts
    • 19,224 Thanks
    getmore4less
    • #6
    • 12th Mar 18, 9:45 AM
    • #6
    • 12th Mar 18, 9:45 AM
    This topic comes up on the tax board there are some threads with relevant information

    Try the HMRC manual for guidance

    https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg30200c
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