Thank you very much for your replies. The original valuation was based on the average of three estate agent valuations - done by way of a letter from the agents, as the estate is not taxable (IHT205/217).
I would rather substitute the sale value for the “probate” estimated value, as we have the headroom from the NRB & RNRB and therefore still no tax to pay. Whereas, if we consider the increase to be an actual gain then CGT would be payable. To be on the safe side I will appropriate the property before exchange of contracts. I wonder if I should contact the district valuer and see if they have a view, or would that be opening up a can of worms…
Gill Collins
Warwick & Barker