Valuations for Inheritance Tax
We understand that, during a distressing time, the need to have personal property valued may appear a potentially daunting and overwhelming experience for the family, or for an executor or relative tasked with a role for which understandably they may have minimal prior knowledge.
That's why we offer a complete executor service encompassing valuation, collection and clearance, storage, distribution to beneficiaries and sale by auction. We are the first choice valuers for the majority of Bristol, Somerset and the surrounding regions probate solicitors, and for private executors administering estates.
With over 160 years of combined experience and industry insight, our dedicated team are well versed in collaborating with clients, beneficiaries and executors, or directly with the solicitors. We’ll guide you through the complex process of probate - and because we are valuers AND auctioneers, who work alongside house clearance teams and charities, we can deliver a total probate solution that works for you, reducing stress at a difficult time.
Our Probate Promise to you:
For a no-obligation discussion of your requirements, please contact the Saleroom on (01934) 830111 or email us at info@clevedonsalerooms.com
Some common questions answered:
When does an Estate require a formal Probate valuation?
Probate is required on an Estate when Inheritance Tax (or IHT, currently 40% on the balance over the below thresholds) might be payable. This is usually (though not always) on Estates where the value of the House + Bank Account + Stocks, Shares & Pensions is close to or over the allowance.
The thresholds set by HMRC are as follows:
Individual limit: £325,000
Individual leaving items to child(ren): £325,000 + £175,000 = £500,000
These thresholds generally double for a married (not co-habiting) couple. So a couple leaving items to children should usually have a £1 million allowance before IHT is due.
Please note:
Inheritance Tax is NOT payable upon the first Estate of a couple, ie if Mr Smith passes ten years before Mrs Smith, there is no IHT assessment at the first Probate, and Mr Smith's 'allowance' transfers across to Mrs Smith.
Do I need to have everything listed and valued?
No. In cases where the total Estate is below threshold, a valuation is only necessary or desirable for Family Division in order that:
a) Items of higher value are identified by professional valuers to prevent accidental disposal (such as the £33,000 Chinese cup we found on a routine Probate in Bristol)
b) The Wills stipulates Specific Bequests be valued, or they need to be valued for fairness / general interest
c) In order to know what items may be saleable at auction
How do you value the Chattels?
We use our current market experience as auctioneers and our access to databases or past results in order to find reliable comparisons and their selling prices. Ths ensures that you do not 'overpay' when it comes to tax. We take the mid auction estimate as the Probate / Family Division figure. So, an item we value at £500-700 for auction would have a Probate value of £600.
Is there anything you don't include?
Yes, lots. In most houses, only a proportion of items warrant a valuation. In our case, we only value items we believe can be sold at auction, taking transport and sale costs into account. So, we would typically not value house contents with the following criteria:
Upholstered furnishings not meeting current Fire and Safety Regulations (either made 1952-1988, or post-1988 but without safety labels)
Electrical and white goods (with the exception of decorative lamps)
A good proportion of post-1980 furniture
Items valued at below £50 (unless part of a collection or saleable in a cohesive group)
Items where transport cost outstrips value (eg many upright pianos; plant machinery, etc.)
Damaged items where restoration cost exceeds value
Do I receive a report?
Yes. We can email and / or post these as required. we usually send two copies to solicitors, included in the cost, but further copies are supplied at no extra charge.
Do I have to send the report to HMRC?
No. The only items which need to be mentioned specifically are those with a value of £1,500 or over, together with the overall total ('Global Figure').
This figure, added to House + Bank balance + Stocks / Shares Pension, gives the value of the Estate for IHT.
Who pays for a Probate valuation?
The cost of any work we do is for the Estate to pay, and it is generally paid from Estate funds once the Grant of Probate is acquired (ie when funds are available). We do not bill family members, executors or beneficiaries for this service.
Why is there a cost?
As a business, we make a modest charge to cover our time and efforts, in situations where items for auction may not be forthcoming. However, if items are subsequently consigned and sold with us, and the income we would receive from this exceeds the cost of the Probate, we are happy to consider this favourably in relation to any outstanding charges, or to make some allowances where we can. We aim to keep our costs as reasonable as we can, in order to deliver a good and useful service.