Sorry, am completely out of my depth on this one!
I have Probate, and in order to administer The Estate of my deceased mother, I need to know whether CGT is likely to be payable on the sale of the house which is now under offer; but a beneficiary is desperate to know exactly how much money he will be getting to buy a house for himself so I need to know whether I am likely to need to factor in CGT in the 'final' calculation. (IHT is not payable as my mother inherited the Estate in its entirety from my father who died years ago).
My mother died in Feb this year; the house was shortly afterwards valued by EAs and I submitted an average value when I applied for Probate.
At the time, I thought this value was a bit low (£435,000) although it was a difficult property to value (the estimates varied by £50,000!) - but I was very keen to avoid being seen to deliberately over-value the house to avoid CGT so erred on the side of caution (yes, I know, I know!); I now believe the evidence that shows house was undervalued, borne out by a recent (accepted) offer on the house for £20,000 more than that, made immediately after the first viewings on the house! The house is situated in rural Wiltshire, where, in my opinion, prices haven’t moved a great deal over the past few years, and certainly not between Feb and August this year.
My questions are:
- As the House was never officially valued for tax purposes, can I ask to have my original Probate value changed? Who do I write to, to do this? What ‘proof’ will I need? I recognize I need to have actually sold the house before I can proceed.
- If CGT is deemed to be payable, how much is it likely to be, approximately? Selling fees will be around £6000, thus CGT payable on £14,000 (note the house has not been transferred into the beneficiaries names).
- What form/s do I need to declare a CG?
ANY help or advice would be gratefully received! I've been told 'The Estate has its own CGT' (of how much?)/that 'each beneficiary has to submit their own tax return' (2 are children...)/I've been referred to the HMRC's own website but can't make head nor tales of it!