Chartered surveyors provide market valuation reports that meet the rigorous standards set by the Royal Institution of Chartered Surveyors (RICS) and HMRC only employs chartered surveyors to challenge and review estate submissions. 

Chartered surveyors when producing market valuation for inheritance tax purposes rely on the IHT manual, RICS Global Valuation Standards and provisions of the Inheritance Tax Act 1984. 

Chartered surveyors possess the necessary expertise to handle complex valuation scenarios, including properties with unique designs, development potential, or extensive renovation needs.

HMRC is less likely to challenge valuations prepared by chartered surveyors due to the comprehensive evidence and professional standards associated with their reports.

Additionally, HMRC uses District Valuers who are chartered surveyors to challenge and review estate valuations. In case of HMRC challenges, chartered surveyors, like Erikas Grig, are experienced in negotiating directly with District Valuers, streamlining the process and protecting the estates from HMRC penalties. 

Unlike estate agents, we can provide valuations for both property and chattels, offering a comprehensive service that covers all aspects of the estate valuation process. 

Chartered surveyors, especially those with a proven track record like Erikas Grig, bring years of experience and success in handling probate valuations, instilling confidence in administrators and executors.

Generally, the Personal Representatives of the deceased individual are responsible for the probate valuation. This can be the executor named in the will or the administrator of the estate. 

Between 2011 and 2012, the HMRC made £88 million from the challenging property valuations submitted by executors and administrators. Paying extra inheritance tax and penalties due to inaccurate valuations can come as a huge blow.

The government website states that: 

If a penalty arises because of a lack of reasonable care, the level of the penalty will depend on the reasons for the error and the potential lost revenue. The potential lost revenue is an additional amount of tax which is due or payable as a result of correcting the inaccuracy.

For example, if:

• a penalty arises because of a lack of reasonable care, the penalty will be between 0% and 30% of the extra tax due.
• the error is deliberate, the penalty will be between 20 and 70% of the extra tax due.
• the error is deliberate and concealed, the penalty will be between 30 and 100% of the extra tax due.

Therefore, for estates exceeding the £325,000 inheritance tax limit, it is not recommended to submit unregulated property valuations or estimates to avoid potential penalties. 

The timeline varies based on the complexity of the estate, however, our valuation report turnaround for property and chattels is 5 working days from the date of inspection. Multiple properties in the estate might take slightly longer. 

A higher sale price often results in the HMRC increasing the owed inheritance tax, especially if the sale takes place soon after probate is granted.

This often can happen if representatives of the deceased’s estate have relied on informal valuations produced by estate agents. 

It is possible to challenge the increase made by HMRC by negotiating with the District Valuer responsible for an estate review. However, this is often very time-consuming and technical. We can negotiate on your behalf and work out arrangements directly with the District Valuer appointed to manage your case.

In addition, you might be liable for Capital Gains Tax if you sell the property for more than its declared probate value. Capital Gains Tax is calculated on the increase since the deceased’s date of death and is only charged when the property is sold.