House valuation for probate and possible CGT liability

[simondh1170]

Hi I wonder if someone could help or give a view. I am the executor of my step fathers estate and have recently received the grant of probate based on a gross estate value of £208k less debts iro £15k. The property now seems like it will sell for £220k and not as the valuation stated £200k. Is there therefore likely to be capital gains tax liable on the amount in excess of the allowance of £12300? If so, can I (or do I need to) adjust the valuation upwards to the sale price to avoid that liability?

After debts are settled, the proceeds are to be split between 5 beneficiaries.

Thanks in advance.

[maths]

As the estate amount falls in the Nil Rate Band £325,000 no IHT arises on the estate (assuming no PETs or CLTs in the prior 7 years.

An adjustment in the probate value upwards is unlikely to be acceptable to HMRC as this will mean there is still no IHT due on the estate but HMRC then collect less CGT.

[simondh1170]

Thanks for the reply. I think the valuation was wrong, rather than an increase in value. The date of death was 30th January 2021, so for it to have risen £20k in 2 and half months is unlikely. If HMRC don't accept the revised value, I assume CGT will be payable on £7700 (£20k less £12700 allowance)?

[maths]

Yes. CGT on gain less annual exempt amount ie 20,000 less 12,300.