Unfortunately, because 40% tax is payable on inheritance over £325,000, valuing a property for probate purposes is an emotive issue.
Why Pay Inheritance Tax On The Property
Of course, there is an argument that says, why should any inheritance tax be paid at all? No doubt the deceased will have paid tax on earnings, tax on savings, stamp duty on the purchase of the property or properties. So yes, inheritance tax is one of the most unfair taxes around. So what can you do about it?
Why Its Important To Use A RICS Property Valuer
Well, it is important you get it valued by an RICS qualified valuer, who knows how to value property according to the RICS Valuation Standards, 7th Edition (otherwise known as the Red Book). We will value it according to comparable transactions completed, whilst taking account of all variables such as size, location, condition, etc and then take an informed view. Thus, we will give an honest appraisal of the market value of the property, and yes, we will do our utmost to protect the ‘innocent’ trustee of the deceased, by ensuring the value is probably low, ensuring the trustee pays as little tax as necessary.
Using Comparables To Reduce Tax Liabilities
Avery Associates will provide, where possible, comparables that back up the market value, but do it in the favour of the trustee (assuming he or she is our client).
If we can, and we invariably do, (using our professional expertise), ensure we can back up our conservative valuation, then we have assisted the ‘innocent’ trustee by keeping their inheritance tax bill, where most would say it should be, at an absolute minimum.
This article was compiled by Kieth Fraser MRICS
For more information call Jeffrey Avery on 0800 567 7769