Filling out C4 - Corrective Account Form

[DJ314159]

Suppose a painting was valued at £800 for probate and subsequently sold for £740, but after selling costs were subtracted only £600 remain. I assume it's the £600 figure that goes on the C4 corrective account form and not the £740, is this correct?

[AGoodman]

I'm not sure there is any facility for reducing the value of a chattel (such as art) because it sold for less than the original probate value. I suspect you could only substitute the sale price for probate value if it became clear that the original valuation was wholly wrong and receiving £60 less than the probate value would not qualify.

Even if you can, there is no relief for costs of sale so at best it would be £740.

[DJ314159]

Knew it was optimistic to want relief for the costs of sale and was intending to put the £740 figure (actual sale value achieved) on the C4 form. Can't see a problem reducing the value of a chattel to actual value achieved as I'm sure HMRC
would be interested to know of an increase, but I suppose it's about percentage differences and the sums of money involved. Thanks for your reply.

[maths]

The reason for filing a Corrective Account is simply to modify a valuation adopted for probate purposes which is believed (in hindsight) to have been incorrect.

Costs associated with any post death sale are irrelevant for this purpose.

Hence the relevant figure is £740.