HRMC Valuation Office Agency?

[kalidarkone]

They have been in touch with the solicitor that is handling the probate of my late ma's estate.

I think it's to check there is not inheritance tax avoidance going on because ma's house ( 3 bedroomed terraced house in Hornsey/Finsbury Park) was valued at £520 K - due to subsidence and repair work and in need of updating.

Am I right?

Does anyone have any experience of this? What happened?

 

[moochedit]

They have been in touch with the solicitor that is handling the probate of my late ma's estate.

I think it's to check there is not inheritance tax avoidance going on because ma's house ( 3 bedroomed terraced house in Hornsey/Finsbury Park) was valued at £520 K - due to subsidence and repair work and in need of updating.

Am I right?

Does anyone have any experience of this? What happened?

Seems limit for a house is one million but i guess they need to value it to check that?

Inheritance tax on property - Which?

Everything you need to know about how your property is taxed when you pass it on to your heirs, and the rules and thresholds for the main residence nil-rate band in 2022-23

www.which.co.uk

 

[platinumsage]

Yes they likely want to check the value of the house. They might ask for documents used to support the probate valuation, they might visit the property and conduct their own valuation.

This normally happens when the value of the estate is close to an inheritance tax threshold, or the value of the property given for probate differs significantly from nearby properties of a similar size.

Nothing to worry about unless your £520K valuation was done on the back of a fag packet.

 

[kalidarkone]

Seems limit for a house is one million but i guess they need to value it to check that?

Inheritance tax on property - Which?

Everything you need to know about how your property is taxed when you pass it on to your heirs, and the rules and thresholds for the main residence nil-rate band in 2022-23

www.which.co.uk

It was valued back in March-for date of ma's death - end of January.
They have the valuation report that I had done in March.
I've written to HRMC asking, what this is about and to arrange access.

 

[kalidarkone]

So I've received an email from the HRMC Valuation Agency clarifying what I thought, which is they felt the Valuation of the house was too low. However they are not able to inspect and value untill the new year. Fingers crossed they concur with the original valuation, otherwise that will be more inheritance tax to pay.

 

[mx wcfc]

So I've received an email from the HRMC Valuation Agency clarifying what I thought, which is they felt the Valuation of the house was too low. However they are not able to inspect and value untill the new year. Fingers crossed they concur with the original valuation, otherwise that will be more inheritance tax to pay.

Is it on the market? At what price?

My understanding with IHT & residential property is that if the property sells for less than probate value, you can amend the IHT return and get a refund. Maybe that's only if the property is still in the Estate and hasn't been signed over to the beneficiaries.
If it sells for more, either the Estate or the beneficiaries may end up with a Capital Gains Tax liability. That is likely to be a lower amount than the 40% IHT rate, so don't worry about that.

I know someone who may know the answer to this. I'll see what I can find out from them.

 

[kalidarkone]

No it's not on the market and probate is not done yet.
I'm going to write to the guy that did the original valuation and see if they can negotiate with HRMC- this was suggested by my solicitor.