Changing property probate value after two years

Hi all, Our son died intestate on 13/08/2021. My wife and obtained Letters of Administration on 14/02/ 2022 as executors and sole benificiaries. The property is now sold subject to contract, but we discovered that the probate value was 125K when I fact it should have been £135K (we have a valuation of said property of £135-£140K on 06/11/2021). We contacted HMRC and were told that only the value at probate will be accepted. However, another agent told us that you normally can’t change after 2 years of the probated value,,but HMRC can consider mitigating circumstances if evidence is provided. Who is correct??. Can you add written notes on the CGT form. The property is been sold for £145K. Thanks in advance.

Hi,

You can see guiddance here:

CG16251 - Assets: checking valuations: value ascertained for probate

Thank you.

Thank you for responding. I have read the document you stated (CG 16251) and it seems that whether you have to use the probated value of an estate for CGT purposes depends on if the property was ascertained for IHT purposes. I also read the document referenced CG 32224 to see if the estate was ascertained. However, I’m not sure how to interpret it. The estimated probated value of the house was £125K and the selling price now subject to contract is £145K. Both values are well within the nil rated band of £300K for IHT. Does this means that the probated value is not ascertained, therefore, I can use the estate agent’s market price guidance of £135K-£140K) a few months after my sons death. If so what value is acceptable to HMRC, the lower or higher, or the median price of the two valuation, e.g. £137.5K.

Hi Glenne Nelson,
As long as the whole estate is under £325k then this would be classed as not ascertained for IHT and you can use the estate agent market price.
Thank you. 

Which value will HNRC accept, the lower of the market value m, £135K or the higher, £140K….or the median value of the range, e.g. £137.5K?

Hi,

If you have only had one valuation done then it is the lower.

Thank you.

Thank you.