The open market value rule, when a DIY estimate is acceptable, when you need a professional, jewellery and watches, antiques and art, vehicles, digital assets and crypto, HMRC challenges, and a record-keeping guide for executors.
This guide is part of ProbateHelp's Inheritance Tax guide cluster. Estimated reading time: 16 min.
No. You need a reasonable estimate of the total value of personal possessions, with more detail for significant items. IHT400 notes say individual values are wanted for the IHT407 boxes covering jewellery, vehicles, boats, aircraft, antiques, works of art and collections; other household goods can be added together.
List the jewellery and get a qualified jewellery valuation where the value is uncertain or significant. IHT407 asks for individual details of jewellery valued at £1,500 or more, and says to enclose a professional valuation if you have one.
No. Insurance valuations are usually based on replacement cost. HMRC guidance says the IHT value is the open market value under section 160 of the Inheritance Tax Act 1984, so an insurance figure may be too high and should not be treated as the probate valuation basis.
Keep the sale evidence because it may be relevant to the estate accounts and CGT. GOV.UK loss-on-sale relief forms cover land and buildings (IHT38) and qualifying investments (IHT35); they do not provide a general IHT loss relief for ordinary household goods or chattels.
Check insurance schedules, bank statements, correspondence, photographs, and previous auction or dealer paperwork. If you find evidence of a collection, ask a specialist auction house or valuer to assess it before the IHT return is finalised.
If you can identify the asset from exchange statements, emails, wallet records, or tax papers, record the holding and a consistent sterling value at the date of death. Recovering access is a separate practical problem, but the valuation obligation still needs to be considered.