Probate Valuations for UK Executors

A probate valuation establishes the monetary value of a deceased person's possessions at the date of death. This valuation forms part of the estate's Inheritance Tax (IHT) return and is used to calculate any tax owed to HMRC.

The valuation must reflect Open Market Value (OMV) — the price an item would reasonably fetch if sold on the open market, typically at auction. This is distinct from insurance replacement value, which is usually higher.

HMRC does not set a universal £1,500 threshold above which every asset must be professionally valued. Executors can make reasonable estimates where appropriate, but should consider a specialist for potentially valuable or difficult-to-value assets. Form IHT407 separately requires jewellery worth £1,500 or more per item to be listed individually; attach a professional valuation if you obtained one.

Where everything needs valuing together — the property, the house contents, vehicles and investments — a coordinated estate valuation for probate coordinates the relevant specialists where a single point of contact is preferred.

A probate application needs reasonable estate values, but that does not mean every asset needs a professional report. Professional input is particularly useful when:

• The estate may be taxable after considering the available nil-rate bands, exemptions and reliefs
• The estate contains potentially valuable or difficult-to-value items
• You are uncertain about the value of particular items
• The estate includes specialist assets such as art, antiques or classic cars

Property is usually the largest single asset in an estate, and HMRC scrutinises declared figures through the Valuation Office Agency. See our guide to probate property valuation for how RICS surveyors assess houses, flats and land at Open Market Value.

Inheritance Tax must be paid within six months of death, even if probate has not yet been granted. This creates a practical urgency to obtain valuations promptly.

One of the most common mistakes executors make is copying an insurance valuation into the estate return. Insurance figures reflect retail replacement cost and are usually higher than Open Market Value, so using one can overstate the estate. Use a reasonable Open Market Value at the date of death and retain the evidence supporting it.

Probate vs insurance valuation — a full side-by-side comparison

HMRC does not prescribe one qualification or maintain an approved list of probate valuers. Look for expertise and credentials relevant to the particular asset:

• IRV (Institute of Registered Valuers) — registered jewellery valuers and their stated specialisms
• RICS (Royal Institution of Chartered Surveyors) — relevant property or chattels work, depending on the individual and firm
• Gem-A (Gemmological Association of Great Britain) — gemmology qualifications that may be relevant to gemstone work
• Category experience — demonstrated knowledge of the period, maker, marque or collector market involved

Verify the individual in the relevant directory and check professional indemnity insurance separately. Membership, methodology and insurance requirements differ between bodies, and none guarantees that HMRC will accept a figure.