Changes to Inheritance Tax Thresholds and House Valuation for Probate
When a house goes into probate and is to be valued, those chosen to execute the last wishes of the homeowner are responsible for making sure that home is valued and sold accurately.
In recent years, HM Revenue & Customs has increased the amount of probate house valuations it has challenged. This is something that many executors are unaware of.
If the property is valued very close to the inheritance tax threshold, then any house valuation for probate may be challenged by the Inland Revenue. Therefore, attaining an accurate house valuation for probate is paramount.
However, new inheritance tax thresholds for 2017 look more favourably on beneficiaries. Presently, an estate totalling £325,00 is free of inheritance tax (IHT). Currently, in the UK, only one in sixteen estates is valued at a sufficient amount to pay inheritance tax on the probate sale of a house.
From 6th April 2017, a new nil band will be introduced and is applicable for any house valuation for probate at, or above £100,000. This will rise incrementally, reaching £175,000 for any party that leaves an estate upon their death after 6th April 2020. When calculated as an addition to the standard £325,000, the threshold of probate house valuations that will NOT pay inheritance tax from an estate will be £500,000.
Who can value a house for probate? Springbok Properties. To speak to an experienced property company who can accurately complete a house valuation for probate or probate house sale using the leading property portals in the UK, guaranteeing a quick sale, call Springbok Properties TODAY on: 0800 068 4015.