Amend Inheritance tax estate report

Incorrect value stated

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I have completed an inheritance tax estate report and logged it with HMRC as well as changed the land register for a house valued at £300k.  

It turns out the house should have been valued at £350k over the standard £325k threshold for IHT to be due. 

However, the residence nil rate band of £100k would have been avalaible so no IHT would still be payable.  I am not sure what I need to amend and with who as I would like the value reflected correctly with HMRC incase of any future sales and the land register.  As no IHT would still not be due, do i even need to inform HMRC?

Can i get the land registry to show the correct value of £350k based on the date the register was changed in April 2018 or will it only be changed now to say value amended in February 2019 to £350k.  Ideally I obviously only want it to show the value in April 2018 as £350k which it should have been.  Unfortunately it was undervalued at the time.  

Replies (4)

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By Tax Dragon
11th Feb 2019 19:11

If you want HMRC to know the right number, doesn't it stand to reason that you should tell them what it is?

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By johnyL
07th Feb 2023 18:08

There are a couple of points here.
Firstly, it's the value of the estates assets at the date of death that is taken into consideration for any liability of IHT - and the house subsequently selling for a bit more than the original valuation, at a later date, is not so unusual.
Secondly, HMRC would only want to know if something materially affects the amount of tax you would owe (so bearing in mind my first point, this is a moot point).
Thirdly - you don't automatically get RNRB - you have to CLAIM it (using IHT435 I believe) and you only have two years to do that.
For peace of mind, why not phone HMRC for a chat? They are usually quite helpful.

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Replying to johnyL:
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By More unearned luck
07th Feb 2023 18:52

I infer from the question that the death was in 2018, so I assume that the matter was resolved sometime ago.

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By More unearned luck
07th Feb 2023 19:10

Old question!

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