Question:

I'm executor for my Father's Will. My Father died in February, and has left a house as part of his estate. When applying for probate, I estimated the value of the house at £200,000, and the total estate at around £230,000.

However, now we are selling the house, it appears from offers we are receiving, that the value of the house is more like £220,000. Is it possible at this stage to revise the probate valuation of the house, so that it more accurately reflects the market value at date of death, based on the latest market value (defined by the actual selling price)? I am keen to avoid paying any Capital Gains Tax unnecessarily. There have been no improvements made to the house since date of death.

Many thanks,

Answer:

There is a special relief so that where the executors sell 'an interest in land' included in the deceased's estate within four years of the death for a value different to its date of death value they can claim relief.

Essentially they can claim that the 'sale value' should be substituted for the 'value on the death'. This will have the effect of reducing any inheritance tax and avoiding a capital loss for the executors.