Defensible Red Book valuations for estate administration and inheritance tax — prepared as at the date of death to the standard HMRC and the District Valuer expect, and negotiated on the estate’s behalf if they query the figure.
When someone dies owning property, the estate needs a valuation of that property as at the date of death. It is the figure that goes on the IHT account, sets the base cost for any later capital gains tax, and underpins how the estate is divided. Get it wrong in either direction and there are consequences — too high and the estate pays more inheritance tax than it owes; too low and HMRC can challenge it, with penalties where the valuation was not properly considered. We prepare the figure carefully, document it fully, and stand behind it.
We act for executors, administrators, beneficiaries and the solicitors and accountants advising them, on houses, flats, blocks, land and commercial property across London and the South East.
Inheritance tax is charged on the value of the estate at the date of death, and the statutory basis is set by section 160 of the Inheritance Tax Act 1984: the price the property might reasonably be expected to fetch if sold on the open market at that time. That is a specific legal test, not a marketing appraisal or an estate agent’s asking price. We value to that test, in accordance with the RICS Red Book, with a full inspection, evidence of comparable sales around the relevant date, and a written rationale that explains how the figure was reached.
Where inheritance tax is in point, HMRC routinely refers property figures to the District Valuer (the Valuation Office Agency) to check them. The DV will look at the estate’s valuation, test it against their own evidence, and may come back asking for the figure to be increased. A valuation prepared to a proper standard from the outset — properly evidenced and reasoned — is far less likely to be disturbed, and gives the estate firm ground to stand on if it is.
If the District Valuer challenges the figure, we handle the negotiation on the estate’s behalf. Because we prepared the valuation to withstand exactly that scrutiny, the conversation is about evidence rather than guesswork — and in most cases the figure is agreed without the estate paying a penny more inheritance tax than it should. Where a genuine difference of view remains, we advise on the options and represent the estate through to resolution.
Estate work is done at the tempo families and their advisers actually need — promptly, sympathetically, and without drama. Every valuation is director-led and prepared for professional reliance, fees are agreed in advance, and we can value retrospectively where a death occurred some time ago and the figure was never properly established.
For a small estate well within the nil-rate band, an agent’s appraisal may be enough. But where inheritance tax is in point, HMRC expects a valuation prepared by a RICS Registered Valuer to the statutory basis. An agent’s asking price is not that, and HMRC’s District Valuer will treat it accordingly.
Inheritance tax is assessed on the value of the property as at the day the person died, not today. We value to that historic date using evidence from around that time, which is essential when the property is sold or assessed months — or years — later.
We negotiate with them directly on the estate’s behalf. Because the valuation is prepared and evidenced to withstand that review, most queries are resolved without any increase. Where a real difference remains, we advise on the options and represent the estate through to settlement.
No. An artificially low figure invites challenge and penalties, and it lowers the base cost for capital gains tax — so a low probate value can simply move the tax from IHT to a larger CGT bill on a later sale. The right answer is an accurate, defensible figure, which is what we provide.
Yes. We carry out retrospective date-of-death valuations where a figure was never properly established — for a late-administered estate, a deed of variation, or to fix the CGT base cost before a sale.
