New queries, issue 4296

A bad result

Following her father’s death some years ago my client’s parent’s house was owned 95% by mother and 5% by husband’s will trust. When her mother died in April 2009 the initial probate value of the whole house was set at £1.8 million and the executors tried to sell it. The will left it 70% to my client and 6.25% each to her husband and three children (total 95%).

In June 2010 just before the Budget they executed a deed of variation to put the house into a trust of which they were all beneficiaries. An IHT election was made but no CGT election. The house was sold in October 2010 for £1.6 million with costs of sale of £52 000.

The solicitor who acted as executor says that he has successfully claimed relief for the fall in value for IHT...