Hello and thank you for your question. I will be very pleased to assist you. I'm a practicing lawyer in England with over 10 years experience.
May I ask the overall value of the estate please approximately as per you IHT205 return you submitted for probate?
on the form it shows 230k as i stated the property to be 200k however we have received an offer for 230k making the full estste work 246k
i have costs on the above showing approx 15k making the nett value 231k where on the probate it states no more than 220k nett
Thanks for the above. From what you say the property has not been transferred to the beneficiaries prior to the sale but you propose to sell the same as executor?
yes the offer has been accepted and is going through. do i need to inform the probate office the value has increased?
Thanks. because there is no inheritance tax due and the increased offer will not change that, the Revenue will be uninterested in the change in valuation and there is no need to inform them of the same. They will tell you they are not interested if you do.
However there is an impact in respect of capital gains tax which will need to be addressed as follows
CGT will be payable on the difference between the probate valuation given and the sale price and therefore on the above figures may result in tax being payable for CGT. Therefore it is important to deal with this. You can do so in the following manner.
In order to avoid a potential CGT charge, you need to consider a post transaction valuation procedure with the Revenue. It is extremely straightforward and can be done once contracts are exchanged so you know the final price paid.
All you need do is complete form CG34 and forward it to the Revenue. Providing the sale occurs within a couple of years of the person whose estate you managing's death they will typically agree the sale price as the correct price and agree for this to uplifted for the purposes of calculating capital gain - i.e. no gain so no CGT.
Once they have made a decision you will receive a letter from HMRC confirming their decision which can be retained in your records. That is all there is to it.
Is there anything above I can clarify for you any further?
no Many thanks appriciate your advice