Hello,
Firstly a quick thank you, I've viewed posts in your forums for a quite a while now and have found them all very useful. I'm now in the situation where I cannot find any posts which can help with an issue I have ...
My late grandmother's property was valued at £420k in early 2014. It sold for £535k this week (completed). I have been informed that there is a capital gains tax due on the £115k increase in the property value since the intial valuation. Whilst we did not question the valuation in 2014, we felt it was quite low however did not complain as it ensured that the total estate value did not go over the inhertince tax free limit of £650k. At the time we were not aware of the capital gains tax which could be due.
My first question is are we able to challenge the initial valuation and get a retrospective valuation done today to value the property again? I am sure that a new valuation (albeit retrospective for 1 year ago) will be significantly higher than £425k ... probably over £500k. Would this be allowed? The initial valuation is clearly wrong.
Second question, is capital gains tax due for each individual beneficiary of the estate? Or is it a combined liability somehow? Are all beneficiaries required to submit income information to an accountant?
Thanks for help in advance ... I've never been in this situation before so am somewhat lost!
James
Firstly a quick thank you, I've viewed posts in your forums for a quite a while now and have found them all very useful. I'm now in the situation where I cannot find any posts which can help with an issue I have ...
My late grandmother's property was valued at £420k in early 2014. It sold for £535k this week (completed). I have been informed that there is a capital gains tax due on the £115k increase in the property value since the intial valuation. Whilst we did not question the valuation in 2014, we felt it was quite low however did not complain as it ensured that the total estate value did not go over the inhertince tax free limit of £650k. At the time we were not aware of the capital gains tax which could be due.
My first question is are we able to challenge the initial valuation and get a retrospective valuation done today to value the property again? I am sure that a new valuation (albeit retrospective for 1 year ago) will be significantly higher than £425k ... probably over £500k. Would this be allowed? The initial valuation is clearly wrong.
Second question, is capital gains tax due for each individual beneficiary of the estate? Or is it a combined liability somehow? Are all beneficiaries required to submit income information to an accountant?
Thanks for help in advance ... I've never been in this situation before so am somewhat lost!
James