A probate valuation supports completion of the IHT400 form by providing the verified, open market values of the deceased’s assets at the date of death, which are entered directly into the relevant schedules of the form. Without accurate, professionally prepared valuations, executors and solicitors cannot complete the IHT400 correctly, and HMRC is likely to scrutinise or challenge the figures submitted. The sections below address the most common questions solicitors and executors have when preparing the IHT400 with a probate valuation report.
What information from a probate valuation goes into the IHT400?
A probate valuation report provides the asset values that are entered into the IHT400 and its supplementary schedules. For property, the open market value at the date of death is entered into Schedule IHT405. For household contents, personal effects, jewellery, antiques, and other chattels, values are declared in Schedule IHT407. Vehicle values, where applicable, are also included in the same schedule.
A thorough probate valuation report will itemise each category of asset clearly, making it straightforward for the solicitor or executor to transfer the correct figures into the appropriate IHT400 schedule. The report should also identify any items of particular value separately, since HMRC expects individual items above certain thresholds to be listed distinctly rather than bundled into general categories. Where the estate includes bequests of specific items to named beneficiaries, a well-prepared report will document those too, supporting the executor’s obligations under the will.
The IHT400 also requires the completion of Schedule IHT406 for bank accounts and financial assets, but those figures typically come directly from the financial institutions. The probate valuation report covers the physical assets, which are often the most complex to value accurately.
What is the correct valuation standard for IHT400 purposes?
For IHT400 purposes, assets must be valued at their open market value as at the date of death. This standard is defined by section 160 of the Inheritance Tax Act 1984, which states that open market value is the price the asset might reasonably be expected to fetch if sold on the open market at that date. This applies to both property and chattels.
For property, the correct approach is a RICS Red Book Valuation, which is a formal, independent assessment carried out by a Registered Valuer in accordance with the RICS Valuation Global Standards. This is not the same as an estate agent’s marketing appraisal, which is an informal opinion of achievable sale price rather than a standardised open market value assessment. HMRC expects property values to be supported by a formal RICS-compliant report, and an estate agent’s letter will not provide the same level of protection if HMRC queries the figure.
For contents and chattels, the valuation standard is the same: open market value at the date of death. In practice, this means what the items would realistically achieve if sold, typically assessed by reference to auction results and comparable sales. A valuer who is also a Registered and Accredited Valuer of Art, Antiques, and Collectables is best placed to apply this standard correctly across a wide range of household items, from everyday furniture to items of significant individual value.
What happens if asset values on the IHT400 are wrong?
If asset values on the IHT400 are understated, HMRC may open an investigation into the estate, which can delay the Grant of Probate and expose the executor to penalties. HMRC has the authority to challenge valuations it considers inaccurate, and where deliberate undervaluation is suspected, the consequences can include substantial financial penalties in addition to the outstanding tax liability.
Even where undervaluation is unintentional, HMRC may require a formal review of the figures, which takes time and adds cost to the estate administration process. Solicitors are increasingly aware that HMRC scrutinises probate valuations not prepared by a qualified professional, making an informal or unsupported valuation a significant risk to both the estate and the executor personally.
Overvaluation carries its own risks. If assets are overvalued, the estate may pay more inheritance tax than is legally required, which is a direct financial loss to the beneficiaries. Correcting this after submission requires an application to HMRC and supporting evidence, which again adds delay and professional cost.
Accurate valuation from the outset, prepared in compliance with section 160 of the Inheritance Tax Act 1984, is the most effective way to avoid either outcome. A professionally prepared probate valuation report, accepted by HMRC without challenge, protects the executor, the solicitor, and the estate.
Who should carry out the valuation for the IHT400?
For property, the valuation for the IHT400 should be carried out by a RICS Registered Valuer, producing a formal Red Book Valuation. For household contents, personal effects, jewellery, antiques, and collectables, the valuation should be conducted by an accredited valuer with specialist knowledge of those asset categories. In practice, the most efficient approach is to instruct a firm that holds both accreditations and can cover all asset classes within a single instruction.
HMRC does not legally require a RICS valuation for all asset types, but industry experience consistently shows that professionally prepared reports from accredited valuers are far less likely to be challenged. Solicitors routinely insist on professional valuations precisely because the risk of HMRC scrutiny on informally valued estates has grown considerably. A valuation carried out by the executor themselves, or based on a quick online search, is unlikely to satisfy HMRC if the estate is selected for review.
The valuer should also carry full professional indemnity insurance, so that if a valuation is later disputed, there is appropriate cover in place. This is a further reason why instructing a regulated, accredited firm rather than an unqualified individual protects everyone involved in the estate administration.
How long does a probate valuation take to be returned for IHT400 filing?
A professionally prepared probate valuation report is typically returned within five working days of the inspection being completed. Where IHT400 filing deadlines are pressing, urgent written probate reports can be provided within 24 hours. Turnaround time is an important practical consideration, since the IHT400 must be submitted to HMRC before the Grant of Probate can be issued, and delays in obtaining valuations can hold up the entire estate administration.
The inspection itself is usually completed within a few days of instruction, depending on the location of the property and the complexity of the estate. A firm with a national network of local valuers can typically arrange an inspection more quickly than one relying on a single central team, which is a meaningful advantage when time is a factor.
Solicitors managing multiple estate files simultaneously benefit from a valuation partner who can commit to consistent turnaround times and communicate proactively about progress. Predictability in the valuation process reduces pressure on the wider estate administration timeline.
Can a single firm handle both property and contents valuation for the IHT400?
Yes. A specialist probate valuation firm that holds RICS accreditation for property and is also a Registered and Accredited Valuer of Art, Antiques, and Collectables can carry out both the property and contents valuation under a single instruction. This is the most efficient approach for IHT400 completion, as it produces a coordinated report covering all physical assets without the need to manage multiple third-party relationships.
Using a single firm also ensures consistency in how the date of death valuation standard is applied across all asset categories, and simplifies the process of transferring values into the correct IHT400 schedules. Solicitors who regularly refer estates to a single trusted valuation partner benefit from a streamlined referral process, predictable reporting, and a single point of contact for any queries that arise during HMRC review.
Beyond valuation, some firms also offer a full range of estate administration services, including house clearance, property sale arrangements, document retrieval, and vehicle disposal, which can be coordinated alongside the valuation to reduce the overall burden on the executor and solicitor.
How Avery Associates supports IHT400 completion
Avery Associates provides a fully integrated probate valuation service designed to make IHT400 completion as straightforward as possible for solicitors and executors. Every report is prepared in strict compliance with section 160 of the Inheritance Tax Act 1984, underpinning a 100% HMRC acceptance rate across all valuations submitted.
- RICS Red Book Property Valuations prepared by Registered Valuers, accepted by HMRC for IHT400 Schedule IHT405
- Probate contents valuations covering household effects, jewellery, antiques, and collectables for Schedule IHT407
- Itemised bequest documentation supporting the executor’s obligations under the will
- Reports returned within five working days, with 24-hour urgent turnaround available
- Nationwide coverage through a network of local valuation teams across every county in the UK
- Full professional indemnity insurance on all work
- Additional services including house clearance and estate administration available under a single instruction
For solicitors managing the IHT400 filing process, Avery Associates provides the accuracy, compliance, and reliability that complex estate administration demands. To discuss an estate or arrange a valuation, contact the team for a free initial consultation.
Related Articles
- How do you cope with grief while managing estate admin?
- How do you value a deceased person's estate for probate?
- How does probate house clearance work in the UK?
- Can probate house clearance be deferred until the estate is settled?
- Can probate house clearance costs be deducted from the estate?
This content was generated with the help of AI and it may contain mistakes
