Probate valuation of property: how it works and why it matters
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A probate valuation of property is the value of the house or flat on the date the person died, used to work out whether Inheritance Tax is due and reported as part of the probate application [1][2]. GOV.UK says you can get any property or land valued "by an estate agent or chartered surveyor", and that you must give accurate valuations [1]. For anyone who inherits a rental property, that same figure later becomes the starting point for Capital Gains Tax [3].
Value each property at what it would have sold for on the date of death [1]. Use an estate agent or chartered surveyor; for a taxable estate, a formal written valuation is the safer choice [1]. Adjust for joint ownership: half for joint tenants with a spouse, the share less 10% for joint tenants with others, and the actual share for tenants in common [1]. Keep the valuation: HMRC can ask to see records up to 20 years after Inheritance Tax is paid [1]. A low valuation can mean a bigger Capital Gains Tax bill later; a high one can mean more Inheritance Tax now [3][4]. Inaccurate information can lead to penalties [1].
General information, not valuation or tax advice.
What "probate value" means
There's no special probate price. HMRC wants the value of each asset "on the day they died" [1]. For property, that's what a buyer would have paid on the open market on that date. HMRC's helpsheet confirms that assets pass to the personal representatives "at their market value on that date", and that this is the value the legatees are treated as acquiring at [3].
Probate valuation of property: who can do it
| Option | When it fits |
|---|---|
| Estate agent's market appraisal | Lower-value estates, clearly under the threshold [1] |
| Chartered surveyor's formal valuation | Taxable estates, unusual properties, tenanted property, disputes [1] |
| Your own estimate | Fine for a first estimate, but for the final figure GOV.UK expects accurate valuations [1] |
Agents often provide free appraisals; chartered surveyors charge a fee. If the estate is near or over the threshold, or you expect to sell and pay Capital Gains Tax later, the surveyor's report is usually worth it, because it's evidence for both taxes.
Valuing a tenanted rental property
A house with a sitting tenant may be worth less than the same house with vacant possession, because the buyer can't move in and must take on the tenancy. How much less depends on the type of tenancy: an older regulated tenancy, which offers increased protection and fair rents [5], affects value far more than a modern periodic tenancy. Tell the valuer:
- the tenancy type and start date,
- the current rent and when it was last increased,
- any arrears,
- the condition of the property and any known repairs.
Since 1 May 2026, assured tenancies in England are periodic and section 21 has gone [6], which valuers may take into account. Ask the valuer to explain their assumptions in writing.
Joint ownership
GOV.UK's rules [1]:
| How it was owned | How to value the deceased's share |
|---|---|
| Joint tenants with a spouse or civil partner | Divide the value by 2 |
| Joint tenants with others (for example siblings) | Divide by the number of owners, then take 10% off the deceased's share |
| Tenants in common | Value their actual share |
| Scotland, joint with others | Take £4,000 off the whole value before working out the share |
GOV.UK's example: a property worth £200,000 owned as joint tenants by 4 people gives a £50,000 share; after the 10% deduction the value is £45,000 [1].
Do you have to report the full valuation?
Most estates are "excepted estates" and don't need full details sent to HMRC [1]. An estate is usually excepted if [1]:
- its value is below the threshold,
- it's worth £650,000 or less and unused threshold is transferred from a spouse or civil partner who died first,
- everything was left to a UK spouse, civil partner or qualifying charity, and the estate is under £3 million,
- the person lived permanently outside the UK and had UK assets of £150,000 or less.
Even for an excepted estate, you report its estimated value when you apply for probate [1]. Where full details are needed, you use form IHT400 within 12 months of the death and before applying for probate [1].
The two-way risk: Inheritance Tax vs Capital Gains Tax
| If the valuation is too low | If the valuation is too high |
|---|---|
| Less Inheritance Tax now, but HMRC may challenge it | More Inheritance Tax now, if the estate is taxable [4] |
| Lower base cost, so a bigger gain when you sell [3] | Higher base cost, smaller gain on sale |
| Penalty risk for inaccurate information [1] |
The aim is an accurate figure. HMRC can ask to see your records up to 20 years after Inheritance Tax is paid, including "records showing how you worked out the value of assets in the estate, for example an estate agent's valuation" [1].
If the property sells for less soon after
If the estate sells land or buildings within three years of the death for less than the probate value, the appropriate person can claim to use the sale price for Inheritance Tax instead, under section 191 of the Inheritance Tax Act 1984, with conditions [7].
Worked example
Neil is executor of his father's estate: the father's home, a let flat, and savings. The estate is near the threshold, and Neil expects to sell the flat in a few years.
| Asset | Agent appraisal | Surveyor's valuation used |
|---|---|---|
| Home | £340,000 | £335,000 |
| Let flat (tenanted, periodic tenancy) | £210,000 | £200,000 |
| Savings | £40,000 | £40,000 |
Neil uses the surveyor's valuations because they're evidence-based and he expects HMRC questions. The flat's £200,000 becomes his base cost when he later inherits and sells it [3]. He stores the report in his Gaffy vault with the flat's other documents.
How to get a probate valuation of property
- Gather details: address, tenure, title, tenancy information, photos, any surveys.
- Instruct a valuer: an estate agent or chartered surveyor [1]. Ask for a valuation "as at" the date of death.
- Disclose the tenancy and condition so the figure reflects reality.
- Adjust for joint ownership where needed [1].
- Include it in your estate estimate and the probate application [2].
- Keep the report with the estate records [1].
What a good probate valuation report includes
Whoever you instruct, ask for a written report that covers:
| Item | Why it helps |
|---|---|
| The valuation date stated as the date of death | HMRC wants the value on the day they died [1] |
| Property description, tenure and condition | Shows the basis of the figure |
| Tenancy details and how they affected value | Explains any difference from vacant possession value |
| Comparable sales near the date of death | Evidence if HMRC asks |
| The valuer's name and qualifications | GOV.UK refers to estate agents and chartered surveyors [1] |
| Any special assumptions | For example, joint ownership or planning issues |
Valuing a portfolio
If the person owned several rental properties, value each one separately on the date of death. Don't add a "portfolio discount" or premium unless the valuer explains why. Keep one report per property, because each property will have its own Capital Gains Tax base cost if you later sell them at different times [3].
Furnished lets: valuing the contents
For a furnished let, the landlord's furniture and appliances are part of the estate too. GOV.UK says you can get a professional valuation for anything worth over £1,500, and estimate the value of cheaper items such as electrical goods and ordinary household goods [1]. For most rental furnishings, a reasonable estimate of second-hand value is enough. Keep a simple list with photos; it also helps as an inventory for the tenancy.
Probate valuation cost
Costs vary between valuers and depend on the property. Estate agents often give a free market appraisal; chartered surveyors charge for a formal report. The fee is an estate administration cost. Get a quote in writing before instructing anyone, and ask whether the valuer will answer HMRC questions about the report if they arise.
Probate valuation meaning in one line
The probate valuation is simply the property's open-market value on the day of death, backed by evidence, used for Inheritance Tax and probate [1][2], and later treated as your acquisition cost for Capital Gains Tax [3].
Probate valuation of house contents in a let property
If the rental was let furnished, list the landlord's items room by room with photos. Most will be ordinary household goods you can estimate; anything worth over £1,500 can be professionally valued [1]. The same list doubles as an inventory for the next tenancy.
People also ask
What is a probate valuation of a house?
The open-market value of the house on the date of death, used for Inheritance Tax and probate [1][2].
Who can do a probate valuation?
An estate agent or chartered surveyor [1].
Does the probate value affect capital gains tax?
Yes. It's treated as the price you acquired the property for [3].
Is a tenanted property worth less for probate?
It can be, depending on the tenancy. Tell the valuer about it.
How long do I keep the probate valuation?
HMRC can ask to see records up to 20 years after Inheritance Tax is paid [1].
FAQ
Can I use a free online estimate?
For a first estimate, perhaps. For the final figure, use a professional [1].
What if the valuation was wrong?
Tell HMRC; you may have to pay a penalty for inaccurate information [1].
Does Gaffy value properties?
No. Gaffy stores the valuation report, certificates and tenancy documents. £12 a month for up to 5 properties, plus £4 a month per extra property, first month free, and we'll set your properties up for you.
Try Gaffy free for a month · Inherited property hub · Inheritance Tax on rental property · Capital Gains Tax on inherited property · Inherited house with sibling
Sources
- GOV.UK, How to value an estate for Inheritance Tax and report its value: https://www.gov.uk/valuing-estate-of-someone-who-died
- GOV.UK, Applying for probate: https://www.gov.uk/applying-for-probate
- HMRC, HS282 Death, personal representatives and legatees (2026): https://www.gov.uk/government/publications/death-personal-representatives-and-legatees-hs282-self-assessment-helpsheet/hs282-death-personal-representatives-and-legatees-2026
- GOV.UK, How Inheritance Tax works: https://www.gov.uk/inheritance-tax
- GOV.UK, Renting out your property: tenancy types: https://www.gov.uk/renting-out-a-property
- GOV.UK, Repossessing your privately rented property after 1 May 2026: https://www.gov.uk/guidance/repossessing-your-privately-rented-property-after-1-may-2026
- Inheritance Tax Act 1984, section 191: https://www.legislation.gov.uk/ukpga/1984/51/section/191