How to value a property for probate and IHT, who can provide a valuation, HMRC's District Valuer, and what happens if HMRC disagrees.
This guide is part of ProbateHelp's Inheritance Tax guide cluster. Estimated reading time: 11 min.
Online tools can give you a rough sense of market value, but use them as a cross-check rather than the estate's main evidence. GOV.UK says property or land can be valued by an estate agent or a chartered surveyor, so keep a written valuation that states the open market value at the date of death.
Yes. The valuation should reflect the actual condition of the property at the date of death. A property in poor condition is worth less than a well-maintained equivalent. Make sure the valuer inspects the property in person rather than providing a desktop valuation where condition is important.
If the sale price is significantly higher than the probate value, HMRC may query whether the probate value was accurate. A modest increase may simply reflect market movement after death. Keep the estate-agent or surveyor valuation, comparable sales evidence, and sale timeline to show the date-of-death figure was reasonable.
Yes. A property valuation obtained for estate administration can usually be paid from estate funds before distribution to beneficiaries.