Inheritance Tax / Probate Valuations

What is inheritance tax?

Inheritance tax is a 40% tax applied after a person dies to estates worth over £325,000 or more if a home or the sale proceeds of a home is included. 

What is an inheritance tax valuation?

To determine how much tax is payable, the market value of the property left on the date of death needs to be established. This helps calculate the total value of the estate.

This is known as an Inheritance tax valuation or valuation for probate.

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.


Dealing with the death of any loved one is incredibly difficult, and one of the last things many people want to think about is how to satisfy HMRC.   Suppose you are dealing with an Estate because of the sudden, often unexpected death of a loved one due to contraction of COVID-19. In that case, it is undoubtedly horrible,  just like with many other conditions, and our sympathies go out to you.

There are some added complications when someone dies of covid-19, but we are still here to help. We are still able to inspect and value properties that were occupied by someone who died of COVID-19. Still, before doing so, we would need to discuss practical precautions that would be required, including the potential use of PPE during an inspection.


Henleaze Business Centre,
13 Harbury Road, Henleaze,
Bristol BS9 4PN
Tel: 01172 872199


56 Gloucester Road,
South Kensington,
London SW7 4UB
Tel: 020 3633 2515


Unit 2b Manaton Court,
Manaton Close, Marsh Barton,
Exeter EX2 8PF
Tel: 01392 984364


Bridge House,
7 Bridge Street
Taunton TA1 1TG
Tel: 01823 765057


24-26 George Place
Tel: 01752 936567

What is probate?

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

 HMRC will often require a Valuation report 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.

If you inherit a property and decide not to sell, a valuation report will still be required if the total value of the estate 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 an accurate valuation of the estate. The Valuation can be challenged by HMRC, with penalties applied onto the Executors if they are negligent in how they obtained a property valuation.

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

Our reports are compliant with both Section 160 of the Inheritance Tax Act 1984 and also the RICS Red Book. We are thorough and evidence our findings sufficiently to mitigate any risk of challenge by HMRC.

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

We endeavour to provide valuation advice in compliance with the RICS Valuation – Global Standards, also referred to as 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 a high standard of service is maintained.

Want some advice on inheritance tax / probate valuations?

Click here to contact us today, and we can aid you further.