For the purposes of Probate the property’s value is based upon the open market value of the property in a sale by a willing seller to a willing buyer (section 160 Inheritance Act 1984). Any peculiarities of the property (for example the fact that there is a buyer desperate for a flat in that particular building and willing therefore to pay a premium) must be ignored.
Once the return has been submitted, the District Valuer at the Capital Taxes Office will consider the valuation given. If they believe that the value is too low the person who submitted the return will be asked to defend the value given. The solicitor acting will turn to the estate agent and ask them to justify their valuation directly to the District Valuer. This situation may arise, for example, if the property is sold for considerably more than the value given in the return just a short period after the date of death.
Our fully experienced RICS property surveyors will prepare an accurate valuation which will be supplied to you as a written probate report and fully compliant with HMRC Inheritance Tax law and eliminate the risk of the district valuer intervening.
For more information please contact either Stephen Burley MRICS for agricultural property or Tom Reid MRICS for residential property valuations.
