Postby Ciwulan34 » Thu Jun 28, 2012 1:12 am
PQtaxation - in my first post I explained that a proper valuation of the property had been carried out ie by a Chartered Surveyor. This was submitted with the IHT400 and we have had a letter from HMRC accepting our figures. My question regarding mitigating our "possible" CGT liability revolves around the fact that in spite of all advice to the contrary, one of the sisters is insisting that the property be put on the market at £450,000 to 'test the waters' - if no success then the price will be reduced. I feel when we do eventually get a sale, that the accepted price will be near to the probate valuation. No renovations etc have been carried out and other estate agents agreed with the probate valuation, except the one who stated that £450,00 was achievable - and as a result of one sisters greed, it means that it is being put on the market at too high a price. However, if by some miracle, the house sold for £450,000, I was just trying to pre-empt CGT problems by finding out whether it would be a good idea to transfer the property into the names of the residuary beneficiaries (the sisters) prior to the sale so that there would be three personal CGT exemptions available.
I stated that the exemption available for mothers estate was £118,000 not £185,000.
Peter - sorry, typing error only, yes, I did mean £650,000 and the threshold for 1990 was £118,00.
Obviously, if the house sells for more than the probate value, I will contact HMRC and let them know and presume that the District Valuer will then get involved.
Thanks very much to all