Overvalued the house

[minime29]

Hello, I'd appreciate some advice on my situation...
I valued my late mother's house (she died at the beginning of the year) and filled in the rest of the forms, calculated the tax due myself and paid it (around £50k)

When I valued the house I included the price it was on the market for.
However, it quickly became apparent this was an over value as the house is leasehold which is quite unusual and the agents said they hadn't realised when they gave the valuation. Had one buyer that was interested but they pulled out due to works that need doing.

Marketed with second agent for less, and had 3 offers for a lot less, and the last buyer pulled out. So essentially no one wants to buy the house unless I'm prepared to sell it for mickey mouse price

Have had surveyor value it in current state and as leasehold - he's valued it at £42,500 less than I stated in the IHT return. Have written to HMRC explaining and waiting for a response.

I know I can claim back a refund if I sell but no one is prepared to buy the thing off me so how do I get the refund then?

The beneficiaries are myself and my brother. I already own a property but my brother sold his flat back in May and has been looking to buy something. He's prepared to buy my half of the house off me if we use the surveyors independent valuation. As no one else wants to buy it can I sell my half to him and will this prompt HMRC to refund the overpayment of IHT which i think is around £17k?

Appreciate any insight

thank you

[Peter D]

The value of the property is based on the OMV at DoD using estate agents was a mistake. You can submit the surveyors value to HMRC/Probate and have the IHT re-addressed.
If you sell your share to your brother for 1/2 the Surveyors value ( Note the District Valuer may get involved ) then you will not be liable to any CGT.
Regards Peter

[Mccandle]

Hi Mate
I had gone through the post you gave regarding your over valued house. I think the agents are mistreating the case as the correct valuation is not there for the house and they want to buy at a much cheaper price. The surveyor had also valued it in the wrong way with less amount . I think you did the right thing by complaining to HMRC. If you do the independent valuation the i think HMRC pays you when your brother buys half of the house.