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Posted Sun, 25 Feb 2024 21:09:30 GMT by Betty
I am selling an inherited property, is it acceptable to find the value of the property at date of inheritance (2011) for cut purposes, by using the Nationwide house price index for the region. This calculates change in value based on original date of purchase, original purchase price and the date of inheritance?
Posted Mon, 26 Feb 2024 12:04:06 GMT by Betty
Typing error - value is for CGT purposes
Posted Tue, 27 Feb 2024 15:05:54 GMT by HMRC Admin 32

If the property was included in probate at the time of inheritance, you should use that figure as the inherited value, when working out capital gains liability.

This is a figure approved by the courts, which is acceptable to HMRC.

Where there was no probate, you can use the market value of the asset at the date of death.

You may need to submit a request for a valualtion (CG34) where there is no formal valuation.

Post transaction valuation checks for Capital Gains (CG34)

Thank you.
Posted Tue, 27 Feb 2024 19:25:19 GMT by Betty
Hi, thanks for the response, there was no probate and I understand that market valuation at the date of death should be used my query is what is a method of valuation that is acceptable to HMRC? Is it acceptable to use the value produced by the Nationwide house price index, an earlier query and answer re a transfer of property to a child suggested that it was (posted by Andrew 6 months ago answered by admin10). A response to a CG34 takes at least 3 months but the gain has to be returned and paid within 60 days so I am looking for an acceptable inexpensive alternative which I hoped would be the Nationwide price index.
Posted Thu, 29 Feb 2024 08:16:04 GMT by HMRC Admin 19

You would need to get estate agents to give you a valuation based on similar properties in the same state being sold at the same time. It is normally recommended to have 3 valuations done in order to get an average. This will allow you to report and pay within the 60 days but you can still opt for the CG34 and make any amendment if applicable.

Thank you.
Posted Thu, 29 Feb 2024 21:56:31 GMT by Betty
Thanks for the information but with regard to my question can you please give me a yes or no answer to my question, does HMRC accept valuations produced by the Nationwide price index for cgt purposes? Incidentally regarding your response, it's difficult to understand how any estate agent could possibly know what state the property was in back in 2011.
Posted Fri, 01 Mar 2024 15:41:07 GMT by HMRC Admin 25
Hi Betty,
No. The valuation needs to be on similar property of the same standard which the price index will not give.
Thank you. 

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