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Probate Valuations London

Probate Advice in London
Thomas Winfield
Mr Thomas Winfield DipSP AssocRICS

London Probate Valuation Specialist

What is inheritance tax?

When someone dies, they may have to pay taxes on their assets. Inheritance tax is a 40% tax applied after a person dies to assets worth over £325,000.

Inheritance tax is payable if the total value of an estate exceeds £325,000. Property inherited or sold is included in this.

In recent years, HMRC has become more vigilant in its requirements for a market valuation. Their advice now is for a report to be undertaken by a Chartered Surveyor and for it to comply with the Red Book (RICS Valuation Standards), which is the gold standard of valuation reports as decided by the Royal Institution of Chartered Surveyors.

How to value property for probate

If a property has to be valued for the probate process, three options are open to you.

Remember that the 2022 Inheritance Tax rate is 40%, and your tax-free threshold is £325,000.

Option 1

Most people opt for the easy solution and search for similar properties in surrounding neighbourhoods to establish a comparable value.

If the value is suspiciously below the £325,000 tax threshold, then HM Revenue & Customs (HMRC) could challenge that figure.

We would recommend using a RICS Chartered Surveyor, such as ourselves.

Inheritance Tax Advice in London
Estate Agent Advice in London
Option 2

A second option is to obtain three valuations from local estate agents to establish a relative average value when submitting probate and tax forms.

We would recommend using a RICS Chartered Surveyor, such as ourselves.

Option 3

The safer method is to use a qualified RICS property surveyor. They will offer a more realistic valuation than one from an estate agent and consider any repairs required before the house can be marketed.

Surveyors can also advise on property renovation or expansion that can increase its eventual value. An RICS valuation will also offer a stronger case against any HMRC objections.

The Benefits of Obtaining a Probate/Inheritance Tax Valuation

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Frequently Asked Questions

Probate is the legal authority to deal with assets owned by someone who has died.

HMRC will often require a Valuation report to be provided before probate can be granted. This determines the tax that will be payable.

Please be aware that the tax is calculated using the probate valuation. If you decide to sell the property, it will still be the probate valuation which is considered more than the amount the property sells for whether you manage to sell it for more or less than the value given.

If you inherit a property and decide not to sell, a valuation report will still be required if the estate’s total value may reach £325,000 or more.

That includes both property and other assets.

If you are a personal representative of the deceased, such as an executor or administrator of the estate, you are responsible for securing a real estate valuation. The Valuation can be challenged by HMRC, with penalties applied to the Executors if they are negligent in obtaining a property valuation.

Without the valuation report, an Executor or Administrator may not gain authority to sell the property.

Our reports comply with Section 160 of the Inheritance Tax Act 1984 and the RICS Red Book. Our experience allows us to be thorough and evidence our findings sufficiently to mitigate any risk of challenge by HMRC.

Our Chartered Surveyors and RICS registered valuers have the necessary knowledge and expertise to carry out Valuations across the South of England.

We aim to provide valuation advice in compliance with the RICS Valuation Global Standards, also called the RICS ‘Red Book’. This document sets out the gold standard for undertaking valuations through a quality-assured process, so you can have confidence that consistency, objectivity, transparency, and high service standards are maintained.