London probate valuers Avery Associates explain why valuations for probate have now become a serious matter for executors due to the high rate of INLAND REVENUE INVESTIGATIONS arising from unprofessional or inaccurate property valuations for probate carried out by unqualified probate valuers. An analysys of HMRC figures shows that there were around 9,368 investigations into inheritance tax valuations in 2010/2011. Thus yielding £70m additional tax raised, with beneficiaries forced to pay £24,600 on average extra per case.
IHT is typically paid on an estate worth £325,000 and over. Beneficiaries can face fines reaching 100% of the additional tax liability if an IHT property valuation is found to be incorrect and the tax officials consider ‘reasonable care’ was not taken in establishing the probate valuation.
We must stress that Inheritance tax does not just affect the wealthy, but the majority of areas in England where an estate may consist of little more than an average size property, and a member of the family may take on the task of administering the estate.
If a property is undervalued by £30,000, this may result in an additional £12,000 tax, plus, say, a 30% penalty of the additional tax, making a total of £15,600. A large sum of money to raise when the estate and its beneficiaries are possibly not in the cash position to cover this.
Avery Associates offer a comprehensive probate valuation service for solicitors, executors and members of the public in London, Surrey, and South East England. Our Probate Valuation Guide provides more information on the the circumstances in which a probate valuation of property, house contents and chattels is required and what is involved.
Our initial assessment and a verbal indication of value and consultation will be provided free of charge, along with free advice.
We have all the expertise needed to provide accurate probate valuations of properties, and chattels including antiques, furniture, and collectables. Even when the contents or chattels have little or no value, you will need a written probate valuation to reflect this, thereby easing the bureaucratic process and preventing possible overvaluation by a layman, which could result in overpayment of inheritance tax. All valuations to include high value items, works of art, and antiques will be assessed by a RICS chartered surveyor. All property valuations are RICS ‘Red Book’ compliant.
Our fees, for providing an estate valuation report will vary, depending on the size the property and the value of the estate. Our fee, once agreed, is fixed. There are no hidden extras. (See our Probate Valuation Guide for more details)
We are aware that the circumstances in which probate arises are often difficult and we handle the process with empathy and discretion. Our aim is to make everything as easy as possible.
After we have provided a probate valuation and you have received a Grant of Probate, we can provide a Full House Clearance Service, and thoroughly and comprehensively clean both the buildings and the garden, so as to minimise delays, and to simplify the process of the preparation of your property for sale or transfer.
For more detailed information call Jeff Avery on 0800 567 7769.
