Inheritance tax vs Capital gains on increased value of estate

A question about : Inheritance tax vs Capital gains on increased value of estate

Hi Forum

I lost my father in 2013 and the estate is still intact.

At the time, a property within his estate was valued for probate at Ј85,000

The same surveyors have revalued it at a current value of Ј100,000

The executors (acting solicitors) are unsure whether the increase in value of Ј25,000 should be taxed at inheritance rate or capital gains. Their latest advice is that the probate value was accepted at the time of death and the inheritance tax paid at Ј85,000 and if its sold at any value increase the additional value should be capital gains

Is this true? They had previously been given advice that the additional value should be at inheritance tax rates. Seems crazy to me that they dont know this, which is why I am seeking additional advice, firstly here

The other point is that the property should be valued at considerably more than Ј100,000. We have estate agents valuing it on Monday - we hope it to be more in the region of Ј160,000

Should the over probate be at inheritance or capital gains rates?

Thanks in advance

Best answers:

• Thanks for the response.
  The valuation was completed by the surveyor appointed by the solicitors acting on behalf of the estate - I dont know if they were the district surveyor or not. The valuation was accepted within the probate process and I have no idea how this was done, I am not an executor I am the beneficiary
  The property has been revalued by the same surveyor but I have checked similar current properties and they seem more in line with Ј160k
  I am still unsure as to the inheritance vs capital gains question
  If the value is more than the Ј100k the surveyor has quoted, do I need to do something else?
• Thank you
  The solicitors should be dealing with this as they are the executors - i dont understand how the estate is closed after sale and the values submitted so I will just have to discuss it with the solicitors further. They dont see to have a clue though
• She is listed as "Trust and Estate Practitioner" but it doesnt say on their website if its Society of Trust and Estate Practitioner member, I assume not if it doesn't say
  Dad was the senior partner at this practise, he appointed them as executors.
  Probate has been obtained, yes.
• https://www.wilkinskennedy.com/servic...-someone-dies/
  May be worth a look.
  https://www.gov.uk/government/public...ment-helpsheet
• Thank you, that's a really helpful link