If a house is valued for probate at say 500,000 but sells for 550,000 is the extra 50,000 charged to CGT or IHT and at what rate. It was my Mums house she had other assets on death but about 100,000 of the house value (based on the 500,000 ) is likely to fall into IHT in the probate after using the 2 x 125,000 (hers and my fathers new property reliefs -Dad died 10 years ago but I believe his extra relief can still be claimed) and the remaining balance of her 325,000.
So its the extra over and above probate if achieved I’m wondering about.
Is it possible if there was a general election and labour won and decided to remove the extra property relief for IHT that it could affect someone who has already died?
In general terms would it be correct to say a lower property valuation from an estate agent is better than a higher one?