property valuation for inheritance tax

[i***@invalid.invalid]

In 1998, when my father died, we valued our property at 300,000
pounds. This was incorrect, because its actual value was around
200,000.

Currently our property is at around 1.1 million pounds. That's the
sale price of one of our neighbours a few months ago, whose house is
similar to ours. However, other houses are selling at 1.3 million
pounds.

Is declaring a price for a house for inheritance tax purposes a matter
of guesswork, can I quote my house at 1.1 million, or are there rules
governing the declared price?

I could ask a lawyer, but I would like advice from this group please.
Thanks.

[David Woolley]

Post by i***@invalid.invalid
Is declaring a price for a house for inheritance tax purposes a matter
of guesswork, can I quote my house at 1.1 million, or are there rules
governing the declared price?

You get a professional probate valuation. A probate valuer will know
how to value it as low as acceptable to HMRC.

[i***@invalid.invalid]

On Sat, 25 May 2019 20:45:46 +0100, David Woolley

Post by David Woolley

Post by i***@invalid.invalid
Is declaring a price for a house for inheritance tax purposes a matter
of guesswork, can I quote my house at 1.1 million, or are there rules
governing the declared price?

You get a professional probate valuation. A probate valuer will know
how to value it as low as acceptable to HMRC.

What happens if, instead of a professional probate valuation, I value
the propety at 1.1 million and see what HMRC have to say?

One of our neighbours was valued at 1.1 million,so I can argue our
house should be similar.

We didn't have a professional valuation when my father died in 1998,
perhaps our guess is good as any at this point.

[David Woolley]

Post by i***@invalid.invalid
What happens if, instead of a professional probate valuation, I value
the propety at 1.1 million and see what HMRC have to say?

If you overestimate, you end up paying 40% of the overvaluation to HMRC
and the the beneficiaries may not be happy with you.

If HMRC has doubts about whether the valuation is high enough, you will
probably have a tough time trying to justify your valuation, whereas
they would generally take a professional valuation at face value.

I'd say that using the value of neighbouring properties is going to
result in far too much uncertainty.