Dealing with an estate after someone passes away can feel overwhelming, especially when legal and tax responsibilities are involved. One of the most important — and often misunderstood — steps in this process is the probate tax valuation. Getting it right is essential, as it directly affects inheritance tax, probate approval, and the smooth administration of the estate.
This guide explains what a probate tax valuation is, why it matters, how the process works, how much it costs, and what HMRC expects, all in plain English.
A probate tax valuation is an official estimate of the value of a deceased person’s assets at the date of death. It is primarily used to calculate Inheritance Tax (IHT) and must be submitted to HMRC as part of the probate application.
Assets commonly included in a probate tax valuation are:
Residential and commercial property
Land
Savings and bank accounts
Investments and shares
Valuable personal possessions (jewellery, art, vehicles)
The valuation must reflect the open market value — what the asset would realistically sell for at the time of death, not an estimated or future price.
A probate tax valuation is not just a formality. It has legal and financial consequences.
Inheritance Tax calculation – Incorrect values can result in overpaying or underpaying tax
HMRC compliance – HMRC may challenge valuations they believe are inaccurate
Executor responsibility – Executors are legally responsible for submitting correct figures
Avoiding delays – Errors can slow down probate approval and estate distribution
Preventing disputes – Accurate valuations reduce the risk of family disagreements
HMRC has the power to review and question valuations for up to 20 years, making accuracy essential.
A probate tax valuation is required when:
The estate value exceeds the Inheritance Tax threshold
Probate is needed to access property, assets, or accounts
The deceased owned property or significant assets in their name
The estate is being reported to HMRC using IHT forms
Even when no inheritance tax is payable, valuations are still often required to support the probate application.
Executors must compile a full list of the deceased’s assets and liabilities, including properties, accounts, investments, and debts.
All valuations must be based strictly on the value at the date of death, not current or future market conditions.
For high-value assets — particularly property — HMRC strongly recommends using a qualified professional such as a chartered surveyor or valuation specialist.
The values are included in the relevant Inheritance Tax (IHT) forms, which are reviewed by HMRC before probate is granted.
If HMRC disputes a valuation, evidence such as valuation reports and comparable sales may be requested.
Property is often the most valuable part of an estate and the most common area of dispute.
A valid probate tax valuation for property should:
Reflect the true market value at the date of death
Consider condition, location, and local market data
Be supported by professional evidence
Be realistic, not conservative or speculative
HMRC frequently challenges informal or estate-agent-only estimates, especially for higher-value properties.
While executors can provide estimates for smaller estates, professional valuations are strongly advised for:
Property
Land
High-value or complex assets
Estates close to or over the IHT threshold
Common professionals include:
RICS-qualified surveyors
Chartered valuers
Probate valuation specialists
Using an experienced professional strengthens compliance and reduces the risk of HMRC disputes.
The cost of a probate tax valuation depends on the type of asset and complexity.
Residential property: £250 – £750
Large or complex estates: £1,000+
Specialist assets (art, land, businesses): variable
While there is a cost involved, professional valuations often save money in the long run by avoiding penalties, revaluations, or tax disputes.
Submitting an incorrect probate tax valuation can lead to serious consequences.
HMRC reassessment and additional tax bills
Interest charged on unpaid inheritance tax
Financial penalties for negligence
Probate delays
Personal liability for executors
If a property later sells for significantly more than the declared probate value, HMRC may investigate.
Yes, but only under specific circumstances.
A valuation may be amended if:
New information becomes available
HMRC formally disputes the valuation
A genuine valuation error is identified
Executors should never adjust values without professional advice or HMRC approval.
Using online estimates without professional support
Valuing property based on future sale price
Undervaluing assets to reduce inheritance tax
Forgetting jointly owned or overseas assets
Failing to keep valuation evidence
These mistakes can trigger audits and delay probate.
Property valuations: 2–10 working days
Complex estates: longer depending on assets
HMRC review: several weeks in some cases
Starting early helps avoid delays in probate approval.
A probate tax valuation is a critical legal requirement, not a box-ticking exercise. Accuracy protects executors, beneficiaries, and the estate itself. It ensures compliance with HMRC, reduces stress, and helps probate progress smoothly.
If you’re acting as an executor or managing an estate, investing in a professional probate tax valuation is often the safest and most cost-effective decision.