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my mum and her siblings are currently selling my late granddad's house - said something about being liable for tax on anything above the valuation if it sells for more..?
not sure if that's something different, or she's got mixed up?fwiw, house is about 600k
hvsds-
something about being liable for tax on anything above the valuation if it sells for more
When you inherit property your cost basis for CGT purposes is the probate valuation, so yes theoretically you could have to pay CGT on any uplift (above your unused tax-free threshold) after probate is granted and the change of ownership occurs.
The above is not relevant if property is sold from the estate (i.e. does not pass into the ownership of the heirs).
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Sure you're liable for it. But it's the difference between paying everything upon granting of probate or some after you've finally sold the house.
The system is screwed, if there's no cash but an expensive house in the estate how do you pay the probate bill, I'm pretty sure my parents had to cash in savings at the time then take the extra money from the sale compared to their siblings.
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Do you know who owned the property i.e. who is named on the deeds as it may not be as straightforward as you think.
Your late grandad may have added your mum and her siblings onto the deeds at some time in the past and should have undertaken a valuation at that time. Now that he has died and the property is in your mum and siblings name there may be CGT to pay on the increase in valuation from whenever the deed of ownership changed to today.
This will also be based on any percentage that your mum owes e.g. it may have been grandfather owned 50% and the remainder split equally amongst the children.
NickCJ
Grumpy_Git
MTB-Idle
The issue I remember my parents having to deal with is IHT being due for payment before a property sold.
So unless the cash held by the estate covered that you could be in a bind to close probate and sell a house.
Always get the house undervalued. Tell them it's a probate valuation and they are your preferred estate agent (winkwink)