Probate and Inheritance Tax valuations

valuation of residential property


As part of applying for probate, HM Revenue and Customs require a value to be submitted for the estate of a deceased individual. This is in order to calculate the amount of inheritance tax where applicable. Currently, assets totalling up to £325,000 are classed as being in the nil rate band for inheritance tax. Assets above that figure are taxed at 40 per cent.

How is the value of a property defined?

For probate purposes, the value of property is defined as its open market value, which is what the property might reasonably fetch if it was sold on the open market to a (willing) buyer on the date of transfer. This means that any peculiarities (such as a buyer desperate to purchase on the property’s street and willing to pay well over the odds) should be ignored. Usually, the effective date of the valuation is the date of death of the deceased.

When applying for the grant of probate an RICS Red Book valuation should be obtained to ensure that any property included with the estate is accurately valued. An RICS Red Book valuation will provide an accurate reflection of what the property would sell for on the open market on the date that the owner died. The report is produced by an RICS Registered Valuer and HM Revenue and Customs will therefore accept it as being suitable for use in determining the value and a challenge of the figure submitted would therefore be very rare.

If you are acting as Executor to the estate it is clearly beneficial for you to obtain an RICS Probate Valuation in order to submit an accurate valuation to the HMRC. We understand that dealing with probate and providing the various information to HMRC can be an incredibly demanding, we can assist you by providing a fast turnaround and ensuring that our valuation report is as easy to follow. 

A typical estate agent will not have the relevant knowledge and qualifications required to provide a market valuation sufficient for the purposes of probate. Valuations should be carried out by a RICS Registered Valuer who has knowledge of the local market and the ability to provide a compliant report. This is particularly the case where the property in question is of non-standard construction, or is the only one of its type in the area, or is dilapidated but is on a large plot of land which could be suitable for development. It’s vital that the executor of the will understands these legal and financial obligations and acts in accordance with the law. The value submitted to HMRC and assumptions in calculating the market value must be justifiable should these be queried by the District Valuer. HMRC are more likely to accept a valuation provided by an RICS Registered Valuer.

Here at Lawrence & Taylor – Chartered Surveyors we believe Valuation costs should be transparent, fixed and never include any hidden extras.

All of our Probate Valuations are set at fixed a cost and include the inspection, report, discussion and recommendations once the report is complete and in the hands of our clients.

 Our Matrimonial Valuation costs start at £300.

Get an RICS Probate Valuation with an RICS Guarantee

The Royal Institution of Chartered Surveyors (RICS) is a professional body that accredits professionals within the land, property, construction, and infrastructure sectors worldwide.

Professionals holding RICS qualifications may use the following designations after their name: MRICS (Member), FRICS (Fellow), AssocRICS (Associate). Those with the designation MRICS or FRICS are also known as chartered surveyors and qualified to produce an RICS Probate Valuation.

All of our probate valuations are undertaken by a Chartered Surveyor who is a member of RICS and a RICS Registered Valuer.