Valuing a property for probate
As part of the probate process, the Executor or Administrator must complete an Inheritance Tax return in every case. This return will be either an IHT 205 or IHT 400. If the Deceased left a property then the date of death value must be inserted on the return. The Inland Revenue rules provide that the value must be that at the date of death ( not the subsequent sale date ) representing an open market value. When determining the value, a variety of factors can be considered, including the condition of the property, recent sales, as well as the development opportunity. Always seek professional help, don’t guess the value as the Inland Revenue will check the return through their District valuer who will be an experienced surveyor with a local knowledge of the market.
If a valuation is challenged this costs time, and money and remember that the costs of a surveyor can be claimed as a legitimate expense of the estate. If tax is paid and the property is sold for a lot less than that valued then you can always apply for a refund from the revenue however there are very strict rules relating to this as you can imagine !
If you need advice on completing the inheritance tax returns for probate, contact us on 01482 429985 or e-mail tim.murden@tmsolicitors.co.uk
