S
stuart noble
In calculating IHT on an estste The Revenue have just agreed the value of a
house as of Sept 03 based on the district valuer's estimate. The house was
actually sold in May 04 for £50K over this figure, and they have asked
whether we wish to accept the lower figure for IHT purposes. Er, well, yes
but have I missed something?
Presumably a capital gain will then arise on the £50K but, for a standard
rate taxpayer, I am assuming there will be less tax than the straight 40%
IHT. What we plan to do is draw up a deed of variation to split the house 4
ways (2 sons, 2 daughters-in-law) so that 4 CGT allowances get used. Does
this sound like a reasonable course of action? There's also a 2 year old
grand-daughter. Maybe there's a way to utilise her allowance as well?
Any advice appreciated.
house as of Sept 03 based on the district valuer's estimate. The house was
actually sold in May 04 for £50K over this figure, and they have asked
whether we wish to accept the lower figure for IHT purposes. Er, well, yes
but have I missed something?
Presumably a capital gain will then arise on the £50K but, for a standard
rate taxpayer, I am assuming there will be less tax than the straight 40%
IHT. What we plan to do is draw up a deed of variation to split the house 4
ways (2 sons, 2 daughters-in-law) so that 4 CGT allowances get used. Does
this sound like a reasonable course of action? There's also a 2 year old
grand-daughter. Maybe there's a way to utilise her allowance as well?
Any advice appreciated.