CG16251 - Assets: checking valuations: value ascertained for probate

TCGA92/S274

When a person dies the value of his or her estate needs to be considered (see IHTM01000 onwards) to determine any liability to Inheritance Tax. Where the values of the assets making up that estate have been ascertained for the purpose of Inheritance Tax the same values must be used for Capital Gains Tax. CG32224 explains what is meant by ascertained in this context.

But there are occasions when a value has been returned for Inheritance Tax purposes but has not been considered by them and so has not been ascertained. For example.

• the whole estate may be clearly below the Inheritance Tax threshold, or
• the estate may be transferred to the deceased’s spouse or civil partner so that Inheritance Tax is not due, or
• assets may be exempt from Inheritance Tax as agricultural land.

Where a Capital Gains Tax computation includes a probate value, you will need to confirm that the value has been ascertained for the purposes of IHT, and if not the value must be determined. Guidance is at CG32240+.

You may receive claims in some cases that sale proceeds should be substituted for probate value. Where sale proceeds exceed probate value this may be an attempt to avoid Capital Gains Tax. In such cases refer to the guidance at CG32234.

The guidance at CG16250 should be referred to if you need a valuation of those types of asset. For any other type of asset where the value has not been ascertained for probate you should consider any valuation returned in the light of the guidance at CG16330+.