Capital Gains Tax on Inherited Property

Did you know that the Taxman can claim Capital Gains Tax on inherited property?  Basically this is assessed on any increase in the property value from when it is valued for probate until the person who has inherited it sells. 

Often people include just a rough valuation of the property at the time of probate if the estate is below the nil rate band for inheritance tax, but it is really worth getting a professional to provide a valuation of the estate.  As long as the valuation of the estate remains below £325,000 (£650,000 per couple) it is worth doing as this may lessen the impact of possible capital gains that become payable in the future.

There is a four year window in which a previously submitted value can be reassessed by a professional, however HMRC will resist an upward valuation so it is far better to organise this at the time of probate.

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