Not all jewellery valuations meet HMRC’s strict standards for probate, and choosing the right professional is essential. Informal assessments from friends or gold buyers may seem convenient but can leave an estate vulnerable to challenges.
At Swift Values, our expert jewellery valuers hold top industry qualifications, including FGA, DGA, and the Professional Jewellers Diploma. With over two decades of experience in assessing contemporary and antique jewellery, we provide HMRC-compliant reports that protect executors from potential liabilities.
If you want to save time and ensure a fully compliant probate valuation, our specialists are ready to assist. The following sections outline what to look for in a professional jewellery valuer, what a proper valuation report should include, and the key questions to ask before instructing a valuer.
Why a Qualified Valuer Matters
When handling an estate, HMRC explicitly expects valuations to be carried out by qualified professionals. Their guidance strongly advises executors to “instruct a qualified independent valuer” for assets of material value. This isn’t merely a suggestion – it’s about demonstrating that you’ve taken “reasonable care” with the valuation process.
The consequences of an inadequate valuation can be significant. An incorrect valuation could lead to the underpayment of inheritance tax, potentially resulting in penalties and interest charges for the executor. Conversely, an inflated valuation might cause the estate to pay more tax than necessary, disadvantaging beneficiaries.
While it might be tempting to rely on a family friend with jewellery knowledge or the estimate from a local jeweller or pawnbroker, these informal valuations carry risk. A qualified professional brings methodology, market knowledge, and objectivity that casual assessments simply cannot provide. Their expertise ensures compliance with Section 160 of the Inheritance Tax Act 1984, which requires valuations to reflect the “open market value” of assets.
Key Credentials to Look For
When selecting a jewellery valuer for probate purposes, these professional qualifications and memberships serve as important indicators of expertise and credibility:
Industry Memberships
- Institute of Registered Valuers (IRV) – Run by the National Association of Jewellers, IRV membership requires formal training, examinations, and proven experience. Members use the post-nominal letters MIRV.
- Jewellery Valuers Association (JVA) – An independent body whose members must hold recognised gemmology and valuation qualifications. Registered valuers may use RJVA after their name.
- Society of Fine Art Auctioneers (SOFAA) – For high-value collections, valuers affiliated with auction houses who are SOFAA members often have suitable expertise for probate valuations.
Professional Qualifications
- FGA (Fellow of the Gemmological Association) – Indicates comprehensive gemmological knowledge and training.
- DGA (Diamond Diploma of the Gemmological Association) – Signifies expertise in diamond assessment.
For executors managing complex estates, Swift Values provides expert probate valuation options to suit every situation.
Experience with Probate Valuations
The valuer should explicitly offer “probate valuations” as a service, not just insurance valuations. These methodologies differ significantly – insurance valuations tend to reflect replacement value (typically higher), while probate requires open market value.
A competent probate valuer will:
- Be familiar with Section 160 of the Inheritance Tax Act 1984.
- Understand HMRC’s reporting requirements.
- Have experience producing valuations specifically for estate administration.
Uncertain whether an in-person or online valuation is most appropriate for your jewellery items? Our main jewellery probate valuations page explains the key differences and helps you make an informed choice.
Insurance and Impartiality
- Professional Indemnity Insurance – This protects the estate if a valuation error occurs.
- Independence – The valuer should be impartial with no conflict of interest. Avoid valuers who also offer to purchase the items they’re valuing, as this creates an incentive to provide lower valuations.
A reputable valuer focuses solely on providing an accurate assessment rather than benefiting from subsequent transactions involving the jewellery.
For the executor, who bears personal liability for the correct administration of the estate, a proper valuation offers crucial protection. It provides documented evidence that due diligence was exercised in establishing the value of the estate’s assets – something that becomes invaluable if HMRC ever queries the figures submitted.
Best Practices for a Probate Valuation Report
A properly prepared probate valuation report provides critical documentation for inheritance tax purposes. Here’s what you should expect from a comprehensive, HMRC-compliant jewellery valuation report:
Essential Report Components
- Detailed Item Descriptions – Each significant item over £1,500 should be individually listed with comprehensive details.
- Clear Valuation Basis – The report should explicitly state that values represent “open market value” as required by HMRC for inheritance tax purposes.
- Individual Item Values – Items valued above £1,500 should be listed separately, while lesser-value pieces may be grouped (though still with a collective value assigned).
- Photographic Documentation – Quality photographs of significant items should be included, aiding identification and providing a visual record.
- Professional Presentation – The report should be presented on company letterhead with the valuer’s signature, credentials, and professional membership numbers clearly displayed.
- Date of Valuation – This should be as close as possible to the date of death, ideally stated as “valued as at [date of death].”
- Summary Certificate – Many professional valuers include a certificate or summary page stating the total value of all jewellery items and explicitly referencing that the valuation complies with inheritance tax requirements.
Questions to Ask a Prospective Valuer
Before engaging a jewellery valuer for probate purposes, executors or solicitors should conduct a brief interview to ensure they meet the necessary standards. These key questions will help you assess their suitability:
- “Do you have specific experience with probate valuations for inheritance tax purposes?” – This confirms they understand the distinct requirements for probate as opposed to insurance or retail valuations.
- “What professional qualifications or memberships do you hold?” – Look for the credentials mentioned earlier that demonstrate formal training and adherence to professional standards.
- “Will your report explicitly state open market values and reference that it’s for probate/inheritance tax purposes?” – This ensures the valuation will meet HMRC requirements.
- “How do you charge for your services?” – Some valuers charge by the hour, others per item, or as a percentage of the total value. Knowing this upfront prevents surprises.
- “Do you carry Professional Indemnity Insurance?” – This protection is crucial should any valuation issues arise later.
HMRC Compliance and Legal Considerations
Selecting a qualified jewellery valuer who follows HMRC guidelines provides important protection for executors. This compliance aspect should not be overlooked, as it has significant legal implications.
- HMRC is more likely to accept valuations from recognised experts without challenge.
- Should HMRC ever question the valuation, having engaged a qualified professional shows that “reasonable care” was taken in administering the estate.
Conclusion
Choosing the right jewellery valuer is a vital step in the probate process that can make the difference between smooth estate administration and potential complications. A qualified professional brings not just expertise in assessing value, but also an understanding of the specific requirements for inheritance tax purposes.
By selecting a valuer with appropriate credentials, relevant experience, and professional standing, you demonstrate that reasonable care has been taken in fulfilling your responsibilities to both HMRC and the estate’s beneficiaries. The modest investment in a proper valuation provides significant returns: accuracy in tax reporting, protection against penalties, clear documentation for beneficiaries, and ultimately, peace of mind that this aspect of estate administration has been handled properly.
