A question about : Inheritance Tax or Capital Gains Tax ..
Hi
Wonder if anyone can help .
My wifes Granddad died February 2014 leaving her and her two sisters a house . We had it valued by 3 local estate agents within a few weeks and average price was Ј315,000 .... The solicitors took the valuations and started there work re probate etc .. 5 months down the line they said we could put it on the market and were offered 400k .. the solicitors now said we would have to pay 40% IHT on the 75k .. the sale fell through because bank didn't value the property to the value marketed by estate agents . My question is shouldn't the solicitors be settling the IHT tax issue by saying to HMRC ZERO IHT to pay as value at death under IHT .. we would then pay CPT if and when the house eventually sells .. we could then use the CPT allowance for 3 people and be better off ?? OR am I missing something ?
The way the solicitors going he wants us to pay 40% of whatever it eventually sells for ?
Is this correct ?
Any feedback appreciated
Best answers:
- There is no transferable relief as Gran used her lot 10 years ago with another property given away to her sons when she died so only 325k allowance .. believe Probate was complete a few months ago.
DWP still doing there bit (he was 97 and on benefits so they checking if he owed them anything) and have not yet given authority to release any funds (he had 3k in cash) so even if house sold now they couldn't get money until that is all complete
Total estate is cash 3K and house (valued feb 2014 at 315k ish and now around 380k ish) - The house was valued for probate and this value was accepted by HMRC?
The house will be transferred into the names of the beneficiaries?
The beneficiaries will sell and the proceeds are likely to be say Ј50000 higher than probate value?
Each beneficiary has his own CGT allowance.
https://www.gov.uk/capital-gains-tax/allowances
https://forums.moneysavingexpert.com/...9#post67722669
post 8 - Interesting!
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