A probate valuation is required in the context of handling an individual’s estate after their death. Probate is the legal process of administering a deceased person’s estate, which includes their assets, debts, and property.
INTRODUCTION
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 so than the amount the property sells for. whether you manage to sell it for more or less than the value given.
When someone dies, their estate may have to pay tax on its assets. This could include money, property and other possessions. Inheritance tax is a 40% tax applied after a person dies to estates worth over £325,000. 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.
The property’s market value on the date of death needs to be established to determine how much tax is payable. This helps calculate the total value of the estate.
This is known as an Inheritance tax valuation or valuation for probate.
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.
If you need a professional property valuation for probate or inheritance tax purposes, our RICS Chartered Surveyors can provide an independent valuation based on the property’s market value at the date of death. Contact Winfields Surveyors for expert valuation support.
