Can I go back to HMRC and request an amendment to Probate?

Can I go back to HMRC and request an amendment to Probate?

10:18 AM, 17th November 2021, About 3 years ago 5

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My mother-in-law passed away earlier this year. I got a valuation and applied for probate. The total assets were below the IHT threshold. The house is now on the market and the value has gone up by £75k, which makes me think the original valuation was a bit low.

The quandary I have is that if the house was treated under IHT there would be no tax to pay (as double nil rate allowances apply), but as probate is granted, the value crystallises, the executors are the legal owners and the estate would pay CGT on £75k.

The house was left to children and grandchildren which increases the IHT limit to £500k, but we are selling it. Does this still count as being left to children?

Can I go back to HMRC and request an amendment to Probate?

Many thanks


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11:47 AM, 17th November 2021, About 3 years ago

"Who is selling?

Where a property that forms part of the deceased’s estate is to be sold, the outcome is different depending on whether the executors or administrators are selling the property, for example, to realise cash to distribute to the beneficiaries, or whether legal title has been transferred to the beneficiary/beneficiaries, who have decided to sell.".....

I had the above issue with my late mother's estate and,had valuations made it worthwhile, the beneficiaries would have had legal title transferred to them in order to use their indivdual CGT allowances of £12,300 each, even babies have one, it's not a difficult administrative procedure; I'd suggest you saw a solicitor.

Alex Piggott

7:46 AM, 20th November 2021, About 3 years ago

Following this one as I was told hmrc hold no record of the value stated at time of probate so I’m interested to know how anyone can disprove what value you now say it was worth at the time of that makes sense.


8:47 AM, 20th November 2021, About 3 years ago

Reply to the comment left by Alex Piggott at 20/11/2021 - 07:46
The DV (District Valuer), if that sometimes pernicious animal still exists, may have a say? See a solicitor before you get in too deep and make mistakes you may regret.

Ron H-W

8:56 AM, 20th November 2021, About 3 years ago

I'd be very surprised if indeed "hmrc hold no record of the value stated at time of probate" - and, even if that's true, they surely have access to the set of probate form/s, or a copy thereof.
In 2010 I foresaw the possibility of an increase, so, on the probate form, I deliberately overstated the value by a reasonable margin (but still within the IHT nil-rate band), in order not to be caught by any possible value increase in the property during the time it would take to sell. (It did indeed fetch some 25k more than the "true" valuation, but some 20k less than the submitted probate figure.)


9:46 AM, 20th November 2021, About 3 years ago

HMRC has your IHT tax return where the declared value will be stated.

It is the value on the date of death that counts for probate and probate valuations tend to be conservative. If you can substantiate that, then you're OK. If you don't sell straight away then the increase might come into force and CGT be incurred as well.

Yes it counts as being left to descendants whether or not it is sold as they get the proceeds and presumably are old enough to agree, if not I presume there is a trust. For example, do they want to keep it and rent it out? Note I'm not an expert on the new rules. The executor does not require agreement but the children and grandchildren are the beneficial owners not the executors and should be consulted (unless they are infants of course).

You really should ask the question of the solicitor handling the probate and sale.

If you are the executor you need to be aware that there are strict rules and you are liable to the beneficiaries if you make an error of law or judgment so please get proper legal and tax advice

HMRC will accept the revised value after sale as the date is in the future, you don't need to do anything now and your solicitor will advise.

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