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Guest muttley

Inheritance Tax Question.

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Guest muttley

I just read Riser's "Stamp Duty...." thread, and the wondered if anyone knew the answer to the following.

If you are left a substantial property in a will, who decides how much it is worth? How long have you got before you have to pay the tax? In particular, what happens if you get presented with a IHT bill based on a valuation, but are unable to sell the property at anything like the valuation?

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If you are left a substantial property in a will, who decides how much it is worth?

You need to get it professionally valued, it's the open market value as at the time of death.

How long have you got before you have to pay the tax?

I believe that if you haven't paid within six months the estate gets charged interest but the actual time limit for payment is quite long (years I think).

In particular, what happens if you get presented with a IHT bill based on a valuation, but are unable to sell the property at anything like the valuation?

The tax has to be paid based on the valuation and it's tough if the timing was bad. It's the estate that has to pay and it could in theory be cleaned out if there are other debts too.

I guess this is a very real possibility if the crash happens fast enough.

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Guest muttley

Thanks.

It's pretty much what I thought. I don't expect this to influence a HPC, but there could be some interesting stories if the market really stagnates/falls.

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Guest Charlie The Tramp

I don`t know if this helps but in my last year running my business I was chatting to a customer who had inherited his mother`s house. A valuation of 800k was placed on it although he knew that would be impossible to achieve. He sold eventually after 6 months and accepted an offer of 650k. I know there were a lot of problems but he eventually won. He as many of us know the market value is what someone is willing to pay at the end of the day and that was finally accepted by thev IR.

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Guest muttley

I don`t know if this helps but in my last year running my business I was chatting to a customer who had inherited his mother`s house. A valuation of 800k was placed on it although he knew that would be impossible to achieve. He sold eventually after 6 months and accepted an offer of 650k. I know there were a lot of problems but he eventually won. He as many of us know the market value is what someone is willing to pay at the end of the day and that was finally accepted by thev IR.

A perfectly reasonable response from the IR.

I guess the problem is for those who intend to inherit the family home and live there.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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