When managing an estate, executors and solicitors face numerous challenges. While many assets like pensions, investments and properties have readily accessible valuations, the task of valuing personal belongings – known legally as chattels – can be particularly daunting.
The Insurance Value Trap
Many turn to insurance valuations as a starting point, but this can lead to substantial overvaluation. Insurance values reflect replacement costs – the amount needed to purchase brand new items at current retail prices. This approach, while appropriate for insurance purposes, isn’t what is required for probate.
Understanding HMRC Requirements
HMRC’s guidance is clear but often misunderstood. It requires the executor to list “the price which the property might reasonably be expected to fetch if sold in the open market at that time.” This open market value is typically far lower than you might expect.
Real World Disparities
A necklace like the below, currently retailing for £430, would struggle to fetch £80 on the open market. This lower figure is the one that HMRC would expect you to declare for probate purposes.

To refurnish a room in a similar style to the photo below would cost around £2,500 if purchasing everything new.
However, if you were to sell the contents of this room at auction, which is the figure HMRC are interested in for probate purposes, then you could expect to achieve around £300.

Tax Implications
If an estate is subject to inheritance tax then over declaring the value of chattels will automatically result in an over payment of inheritance tax.
Professional valuations serve two crucial purposes. They prevent the overpayment of tax due to inflated valuations whilst also ensuring that valuable items aren’t overlooked. This protects estates from both unnecessary taxation and potential claims from beneficiaries.
Here at Swift Values we can assist executors and solicitors in several different ways, from cost effective photo-based assessments to detailed in-person property visits.
Our experts can value everything from antiques and jewellery to vehicles and everyday household items.
All valuations include an HMRC-compliant report ready to attach to your IHT submission.
Click here, email enquiries@swiftvalues.co.uk or call 0330 088 4099.