Estate settled, but sale of Chattels - Tax implications.
Estate settled, but sale of Chattels - Tax implications.
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Discussion

texaxile

Original Poster:

3,531 posts

168 months

Thursday
quotequote all
Hi,
Can someone please advise for the following as per the title.

I have a large selection of items going to auction over the next 4-6 months , estimated value of £10 - £20k according to the auctioneers. As these items formed part of the estate and were declared as such, how may I go about informing HMRC or do I actually need to?.

The estate was below the IHT threshold and the chattels estimated at a higher value anyway (for purposes of the IHT form they were put at £35k)- but it's just now that they're going to sale.

I've not really given it any thought, and , just one more question, if say, someone (not me) was going to be dishonest, would this be a very unscrupulous and illegal way of putting other items into the auction so as to avoid paying further taxes on them?.

TIA and virtual single Malt to you all.

Mr E

22,571 posts

277 months

Thursday
quotequote all
I think if you have an estimate in the probate application and you achieve less value than that;
1) if you’ve paid IHT, you apply for a rebate
2) if you were under before, you’re still under and HMRC don’t care.


texaxile

Original Poster:

3,531 posts

168 months

Thursday
quotequote all
Mr E said:
I think if you have an estimate in the probate application and you achieve less value than that;
1) if you ve paid IHT, you apply for a rebate
2) if you were under before, you re still under and HMRC don t care.
Oh Mate, Thanks for the fast reply and simple answer!.

I was just wondering if it needs to be declared on end of year Tax return or anything.

PH comes through again, many thanks.

Mr E

22,571 posts

277 months

Thursday
quotequote all
texaxile said:
PH comes through again, many thanks.
I’m no expert, just been through it and venturing an opinion.
I don’t trust me and I _am_ me.

The Leaper

5,386 posts

224 months

Thursday
quotequote all
Mr E said:
I think if you have an estimate in the probate application and you achieve less value than that;
1) if you ve paid IHT, you apply for a rebate
2) if you were under before, you re still under and HMRC don t care.
I agree.

I've administered a number of estates for deceased family and friends and this is what should happen IMO.

R.