help please-probate forms and future CGT on property?


T

tarquin

I am currently filling in a PA1 probate form relating to a deceased
relative of my partner. In the assets section i have to list property.
This consists of one house which was owned/not mortgaged by her
deceased relative. I am asked to enter a figure for its value. Will
this figure be used as a starting point for assessing any future CGT
by the inland revenue?. Surely it is only my estimate as i am not
obliged to obtain an offical valuation?. Would i be better to
overestimate the current value so that future potential CGT is less?

thanks

joe

(e-mail address removed)

add 670 directly after bra before emailing
 
Ad

Advertisements

R

Ronald Raygun

tarquin said:
I am currently filling in a PA1 probate form relating to a deceased
relative of my partner. In the assets section i have to list property.
This consists of one house which was owned/not mortgaged by her
deceased relative. I am asked to enter a figure for its value. Will
this figure be used as a starting point for assessing any future CGT
by the inland revenue?. Surely it is only my estimate as i am not
obliged to obtain an offical valuation?. Would i be better to
overestimate the current value so that future potential CGT is less?
Perhaps, but that will be at the expense (which in your case may not
matter) of increasing the extent/likelihood of IHT liability.

You can trade IHT off against CGT within the limits of decency. Just
remember that the valuation needs to be reasonable whichever direction
you decide to stretch it into. Anything too extreme can be called into
question years down the line. If in doubt get it explicitly approved
by the district valuer (which should not cost you anything).
 
T

tarquinlinbin

Perhaps, but that will be at the expense (which in your case may not
matter) of increasing the extent/likelihood of IHT liability.

You can trade IHT off against CGT within the limits of decency. Just
remember that the valuation needs to be reasonable whichever direction
you decide to stretch it into. Anything too extreme can be called into
question years down the line. If in doubt get it explicitly approved
by the district valuer (which should not cost you anything).
Thanks Ron,,
thats how I perceived the situation also. Luckily have spent some time
reading the IR website and guides and I adjusted my IHT 205
accordingly as fortunately there is a decent bit of leeway before
reaching the IHT limit. I just need to get my brain engaged now and
try to fully understand the consequences(!) of owning two houses and
the best way forward on that front..

thanks

joe
Change the 900 to 670 in the return email address to reply
 
Ad

Advertisements

S

stuart noble

I think the IR contact the DV as a matter of course. In my case they
accepted an estate agent's valuation that was 10% below what the house sold
for 6 months later. The assumption is that you will declare the difference
as a capital gain, which is usually beneficial tax wise.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Similar Threads

Property Transfer and Probate 5
Probate Form IHT 205 9
CGT and Let Property 13
CGT on Second Property 4
cgt on sale of property 2
Extortionate Probate Fees - Help 3
2nd property sale and CGT 15
Help with CGT calculation 27

Top