In short
In most cases, yes. HMRC doesn’t insist on a surveyor’s valuation – it needs an accurate open market value as at the date of death. A written valuation from an experienced estate agent, supported by evidence of comparable sales, is suitable for many estates. A formal RICS valuation is worth considering where Inheritance Tax is payable, or where the property or situation is complex.
This is one of the questions executors ask us most. The answer depends mainly on whether Inheritance Tax is likely to be due, and how straightforward the property is.
What HMRC needs
When you apply for probate, you have to report the value of the estate – including any property – as it stood on the date of death. HMRC expects the property value to be the open market value: what it would reasonably have sold for on that date.
There’s no rule that this must come from a surveyor. What matters is that the figure is accurate and can be justified.
When an estate agent’s valuation is usually fine
- The estate is comfortably below the Inheritance Tax threshold.
- The property is fairly standard – a house, flat or bungalow similar to others in the area.
- The beneficiaries agree on the value.
In England and Wales, many estates where no tax is due are “excepted estates”, which don’t need a full Inheritance Tax account; the values are simply reported in the probate application.
When a RICS “Red Book” valuation is worth considering
- Inheritance Tax is payable, or the estate is close to the threshold. The standard tax-free allowance (the nil-rate band) is £325,000, with an extra residence allowance of up to £175,000 when a home passes to children or grandchildren – and unused allowances can pass to a surviving spouse or civil partner.
- The property is unusual – land, a farm, a listed building, a development plot, or a property with a complicated title.
- There’s a disagreement between beneficiaries, or a sale is likely to be disputed.
A RICS valuation is carried out by a registered valuer to the Royal Institution of Chartered Surveyors’ standards, and is harder to challenge. It usually has a fee.
Can HMRC challenge the value?
Yes. Where tax is payable, HMRC can ask the Valuation Office Agency to check the figure. If it’s found to be too low, more tax may be due, with interest – and penalties if HMRC considers the valuation careless.
What if the property later sells for less?
If a property is sold within four years of the death for less than its probate value, it may be possible to claim relief and have the Inheritance Tax recalculated on the lower sale price. Your solicitor or accountant can advise whether this applies.
From experience
For most estates we deal with, our written valuation is all the executors need – and it’s free. Where we think a formal RICS valuation would be wiser, we’ll tell you. We can also help you find a local RICS surveyor if you need one (and we don’t take referral fees for that).
This article is general guidance for estates in England and Wales, not legal or tax advice. Allowances and rules can change: check the latest on GOV.UK, or ask a probate solicitor or accountant.