Question:
The executors paid IHT at 40% on their late mother's house, on a probate value of £380,000. If the house subsequently is sold for £420,000 will further IHT be payable or will CGT be due?
Arthur Weller Replies:
If the house is subsequently sold for £420,000 there will be CGT to pay on the difference between £420,000 and £380,000 (the probate value), i.e. on £40,000. No further IHT should be payable, assuming that £380,000 represented the open market value of the property at the date of death.
