RICS Valuation for probate and inheritance tax purposes

Residential Valuations

We carry out all types of residential valuations for a variety of clients, whether it be for homebuyers, homeowners, solicitors, individuals, housing associations, corporate clients or developers.

There are many other reasons why you made need a Residential Valuation. It could be buying a property, matrimonial purposes, a lease extension, building insurance, re-instatement cost, taxation, probate purposes, investment, auction acquisitions, shared equity, audits, Right to Buy, stair-casing, freehold acquisition and so the list goes on.

Many valuations are referred to as ‘Red Book’ valuations. These are valuations based on the Royal Institution of Chartered Surveyors (RICS) Professional Standards which contain the mandatory practises for chartered surveyors undertaking valuation services. The vast majority of property valuations are Red Book valuations and will be unless specifically specified/detailed otherwise. The Red Book requirements include the International Valuation Standards 2020.

All our residential valuations are carried out by RICS registered valuers.

If you would like a quote and you are not sure what type of valuation you need or on what basis, call us and speak to one of our surveyors, if we can help we will.

Valuation for Probate Purposes (Inheritance tax)

Probate is the legal process of dealing with someone’s assets after they have passed away – this is usually conducted by the executors who carry out the wishes of the deceased person, as stipulated in the will.

A valuation figure for probate purposes (often referred to as a probate valuation) has to be submitted to HMRC as part of the assessment of an Estate (total value of property, possessions and money).

The Inheritance Tax Threshold is currently set at £325,000.

If the total value of the Estate was worth more than £325,000 on the Inheritance Tax threshold date – the date of passing, then Inheritance Tax is payable subject to certain exemptions ie. if the deceased left everything to their husband/wife/civil partner who lives permanently in the UK. Probate valuations are often retrospective and can date back many years.

The valuation of any property owned is therefore a significant element and must be based on the statutory definition for Market Value for inheritance tax purposes as defined in Part VI section 160 of the Inheritance Tax Act 1984 (as well as the Red Book if carried out by a chartered surveyor).

The chartered surveyor must also be an ‘RICS Registered Valuer’ to provide the valuation.

A distinction has to be made between a valuation for probate purposes provided by a chartered surveyor and by estate agents – a valuation provided by a chartered surveyor must comply with all the rules and regulations defined by the Red Book (as well as complying with the Inheritance Tax Act 1984). It is far less likely that HMRC (the District Valuer acting on their behalf) will query a valuation provided by a chartered surveyor/member of the RICS Registered Valuer Scheme but if so we are in a much stronger position to justify our valuation/deal with any queries and are able to act on your behalf in negotiations if required.

Additional information can be found on the HMRC website https://www.gov.uk/valuing-estate-of-someone-who-died

To book an appointment for properties in Kent please contact our Head Office on 01732 752099 or for properties in London on 020 80579890 or by e-mail to [email protected]