Confused over Estate Agents and RICS valuations for Probate

Yorkshireman99

Dymphna60 wrote: »

Wonder if it’s a matter of luck if HMRC want their own valuation. Especially now they are trying to speed up , giving a date you should have heard by if they are questioning your figures .
I got and submitted a RICS valuation by the only qualified surveyor for many miles around and wondered if that also makes a difference. Would seem little point in HMRC using same one wouldn’t she /he use the same report?

A RICS surveyor will give a value at the date of death based on various factors HMR&C will give this rather more credibility than guesses by estate agents. In particular the RICS surveyor will use the same criteria as the Valuation Office wil. Furthermore an RICS surveyor will be prepared to negotiate with the Valuation Office if need be. Having said that nothing is certain in dealing with HMR&C so there is an element of luck. Using. An RICS valuation increases. The odds and provides a firm basis for any future CGT calculation. It also means that beneficiaries are less able to quibble about the value.

Tom99

Dymphna60 wrote: »

Wonder if it’s a matter of luck if HMRC want their own valuation. Especially now they are trying to speed up , giving a date you should have heard by if they are questioning your figures .
I got and submitted a RICS valuation by the only qualified surveyor for many miles around and wondered if that also makes a difference. Would seem little point in HMRC using same one wouldn’t she /he use the same report?

They don't use the same one and even if the VO did outsource the work, which as far as I am aware they don't, the same surveyor could not act for both the taxpayer and HMRC as it would create a conflict of interest.

Dymphna60

That they couldn’t use same surveyor makes absolute sense .
I don’t think HMRC are going to tell us how they decide who’s valuation to challenge.
Maybe some are never looked at very closely if the ‘to do ‘ pile is very high ?

I did wonder about the difficulty of a surveyor without local knowledge disputing a valuation. When A lot of what they are valuing is potential.
But this is HMRC so I was just really relieved the RICS valuation was accepted as the thought of getting into a inderminate wait is depressing.
I want to be very clear that it appears to be a fair valuation. It’s not the kind of house most people would want , hundreds of years old , listed , difficult access but potentially could be a lovely holiday let .

eddyinfreehold

I suppose one factor that makes the whole business strange is that it is in the Estate's interest to have a low valuation in many cases so as to avoid, or at least minimise any IHT liability. Especially so if there was no intention for the house to be sold. In this day and age it must be pretty rare for an Estate to be liable for IHT yet the house is only just into 6 figures. Perhaps there is a percentage threshold or other algorithm which automatically triggers the Valuation Office. Pure supposition on my part.

HHarry

£1.2m estate and both of the included properties were valued on the basis of 2 estate agent valuations.
Neither were challenged.

A RICS valualtion may well be less likely to be challenged, but isn't a necessity.