Inheritance tax valuations (for probate)

If you’re reading this because your solicitor has suggested you need an Inheritance tax valuation to aid a probate application, then thank you for considering using our service. It is never a pleasant valuation request to make.

If you are making a request for a valuation, you’ll want to get it right. A poorly written valuation report can see a challenge by HMRC or potentially too much tax payable. Conversely, a well crafted report is unlikely to be challenged and can ensure that the correct amount of tax is payable.

Can I use an Estate agent?

In theory, yes you can. However, Estate Agents reports are far more likely to challenged by HMRC and often tend to be higher than a report by a RICS Registered Valuer, resulting in higher tax. Penalties may also then apply to you as the person who commissioned the report.

Is the condition assessed?

Yes. Inheritance tax valuations are often (not always) on properties which have not been modernised in a number of years. In most instances, this reduces the Market Value, which in turn reduces the tax liability. We’ll be able to make the arguments to justify our figure for you.

What if the property is rented out?

As RICS Registered Valuers who undertake a lot of Inheritance tax valuations all around London, we know in what instances, HMRC and Case law will allow us to apply a discount to the Market Value, often 5%. This discount then reduces the tax payable.

What if the deceased only owned part of the property?

There are two types of ownership – Joint Tenancy and Tenancy in Common. In the latter, specific shares in a property can be owned. For example, an Estate may be left with 50% of a property. There are some instances, where HMRC and Case law will allow us to apply a discount to the Market Value, often 10%. This discount then reduces the tax payable.

Get in contact 

To ask us for a quote, please e-mail info@websterssurveyors.co.uk with the property address, number of bedrooms and date of death or give us a call on 020 8017 1943

October 2022