Inheritance Tax Property Valuations
We provide RICS-accredited Inheritance Tax valuations in London and the home counties. Contact our team to discuss your requirements.
When someone dies, their estate needs to be valued accurately to work out whether it is subject to any Inheritance Tax. It should be undertaken by an RICS-qualified chartered surveyor, like the team at Crest Surveyors.
An accurate house valuation for Inheritance Tax is necessary if the deceased estate is estimated to be worth more than £325,000 (known as the nil-rate band). The deceased’s estate includes money, properties, personal possessions, investments and pensions. An accurate property valuation should be submitted to HMRC as part of the estate assessment. Any amount above the nil-rate band will be taxed at 40%.
What Is Meant by Inheritance Tax Valuation?
An Inheritance Tax valuation is a property valuation that should be undertaken by an RICS-qualified chartered surveyor. It determines the amount of Inheritance Tax that must be paid on an estate before it is passed on to the beneficiaries.
It involves calculating the ‘open market value’ of a property at the time of the owner’s death. This means the market price needs to be calculated in the past, which is why an expert RICS-registered surveyor is needed to complete the valuation. An Inheritance Tax valuation involves an inspection of the property and a review of the property market at the time of death to calculate an accurate property value.
If a property was gifted to someone in the seven years before they died, this property could also be subject to Inheritance Tax. If this is the case, the property’s value at the time of transfer is calculated instead of at the time of death. The person who was gifted the property would be responsible for paying any Inheritance Tax owed.
What Is Included in Our Inheritance Tax Valuations?
All of our Inheritance Tax valuations are completed by RICS-qualified surveyors with years of experience in dealing with all types and sizes of property. Our inheritance valuation package includes:
- In-person inspection
- Photographic evidence
- In-depth written report
- Accurate valuations
If you need a house valuation for Inheritance Tax in London or South East England, feel free to get in touch with our team to arrange your RICS-accredited valuation. We will happily answer any questions you may have about the Inheritance Tax and property valuation process.
How Much Does an Inheritance Tax Property Valuation Cost?
Our house valuations for Inheritance Tax start from £500, inclusive of VAT.
At the end of the valuation process, you will receive:
- A written report detailing the condition of the property
- A valuation of the property
- Photographic evidence
Typically a property forms the largest part of a deceased person’s estate, so getting an accurate property valuation is a key part of ensuring the Inheritance Tax is calculated correctly.
During the Inheritance Tax valuation process, our expert team will provide you with regular updates on how your valuation is progressing. If you have any queries during the process, we will be happy to answer them.
Which Estates Require a RICS-Accredited Valuation?
If your loved one’s estate has an estimated value near or above £325,000, you should invest in a comprehensive RICS property valuation. An accurate property valuation by RICS-qualified chartered surveyors eliminates the chance of the property being under or over-valued, which is a possibility if you use an estate agent’s estimation. This will result in you paying too little tax and potentially being fined or paying too much Inheritance Tax and needing to claim a refund from HMRC.
Additionally, if your loved one owned a grade-listed building or a large estate, a RICS-registered property valuation is the best choice for providing an accurate valuation for inheritance tax purposes. Crest Surveyors offers thorough red book valuations that include formal, in-depth valuations, photographic evidence, a written report, and a highly accurate valuation. This reduces the likelihood of the District Valuer needing to check the figure you have provided, as RICS-registered valuations are highly respected. We can also carry out negotiations on behalf of clients if required. Please get in touch below for our fees.
Contact our team to learn more about how we can help if you have a large or complex estate that requires a RICS property valuation. We will be happy to discuss your unique requirements.
Inheritance Tax Valuations in London & The South East of England
If a loved one has sadly passed away it can be a highly challenging time. It is essential that you choose a reputable team of surveyors to accurately value your loved one’s property, so you can pay any Inheritance Tax owed. At Crest Surveyors, we’re able to support every step of the valuation process. Whether you need advice on valuing the rest of your loved one’s estate or have any queries about the inherited property, our team is on hand to help.
We always aim to offer a high-quality valuation service that you can rely on when you need it the most.
Inheritance Tax Valuation FAQs
What Is Inheritance Tax?
Inheritance Tax (IHT) is a tax on the estate (money, investments, possessions and property) of someone who has died. Anything above the nil-rate band of £325,000 is taxed at 40%. There is a higher nil-rate band for residential properties passed on to children or grandchildren.
There is no Inheritance Tax to pay if you leave your estate to your spouse or civil partner, regardless of the estate’s size. Your nil-rate band can be added to your surviving spouse’s, meaning when they die and pass on their estate there will be less Inheritance Tax to pay.
Who Is Responsible for Paying Inheritance Tax?
The funds from your estate are used to pay Inheritance Tax to HM Revenue and Customs (HMRC). This is handled by the person who deals with the estate (if there is a will, they are called the ‘executor’).
When Is Inheritance Tax Due to Be Paid?
You must pay any Inheritance Tax owed by the end of the sixth month after the person died. For example, if the person died in March, you must pay the Inheritance Tax by the end of September.
Is the Residence Nil-Rate Band Available to Everyone?
There is a standard nil-rate band of £325,000 and a residence nil-rate band of £175,000. The standard nil-rate band applies to everyone and means inheritors will only pay Inheritance Tax on the part of the estate that is above this threshold.
If you leave your estate which includes a home to your ‘direct descendants’ (such as children or grandchildren), you can also use the residence nil-rate band of £175,000. This means that you only need to pay Inheritance Tax on the part of the estate that’s over £500,000.
What Needs to Be Valued for Inheritance Tax?
All of a deceased person’s assets need to be valued for Inheritance Tax. This includes:
- All individual or joint assets, such as property, investments and savings.
- Any assets held in a trust that they had the right to benefit from.
- Any assets that were given away in the last seven years before their death. There is a sliding scale for how much Inheritance Tax is owed on gifts.
- Any assets which were given away but they still retained a benefit from, for example, giving away a house but still living in it rent-free.
- Foreign assets
What Happens if You Undervalue a Property for Inheritance Tax?
If you undervalue a property for Inheritance Tax purposes this can have serious implications, whether you do it deliberately or accidentally by using a non-RICS valuation. The estate will be required to pay any outstanding tax due plus an additional fine. The fine can be as much as 100% of the total Inheritance Tax due on the estate. This is why it is so important to rely on a professional RICS-accredited valuation by experienced surveyors.
What Happens if You Overvalue a Property for Inheritance Tax?
If you get an estate agent to value your property, rather than an RICS-accredited surveyor, it is possible that it will be overvalued. If you sell the property for a lower price than it was valued at within four years of the date of death, then you can claim a tax refund. You will need to make your refund claim within seven years from the date of death. The property needs to have sold for £1,000 or 5 per cent less than the value of the asset at the date of death, whichever is the lower, for you to make a refund claim.