IHT407 - how to value

newbietoprobate

I am trying to value of the contents of a house - there is nothing of value ie jewellery, coins etc. The contents consist of a TV, other small electricals, furniture, white goods, clothes, kitchen equipment, garden tools mainly. How would this be valued? There is nothing I can sell - it will all go to a combination of the tip/charity shops/council. However I don't have time to clear it all out and send to a charity shop and get proof for IHT408 so I am going to have to put the value of the contents on IHT407. It will cost money to get some of it taken away by the council, or possible house clearance company. So in this case, what value should I put down for contents? It will look odd if I put zero or a low figure but I can't think I'd get much for anything if I tried to sell it

poppystar

I just put a low figure down even though I realise that it may in fact cost me to dispose of it. The amount won’t affect liability to IHT so overvaluing it rather than arguing it has no value will not change the overall situation. If I remember correctly if you were putting no value down you had to justify that.

I had the same issue with an earlier death although that was on the IHT205 form and I asked the helpline who said put in £500 or so and that will be fine.

naedanger

newbietoprobate said:

I am trying to value of the contents of a house - there is nothing of value ie jewellery, coins etc. The contents consist of a TV, other small electricals, furniture, white goods, clothes, kitchen equipment, garden tools mainly. How would this be valued? There is nothing I can sell - it will all go to a combination of the tip/charity shops/council. However I don't have time to clear it all out and send to a charity shop and get proof for IHT408 so I am going to have to put the value of the contents on IHT407. It will cost money to get some of it taken away by the council, or possible house clearance company. So in this case, what value should I put down for contents? It will look odd if I put zero or a low figure but I can't think I'd get much for anything if I tried to sell it

I also just put a low figure down. (I put down £1k for 50% of the contents plus what was actually left in cash.)

 Form IHT 407 asks specific questions to cover the situation where there are high value items e.g. jewellery, items listed separately on home insurance etc.  If all these questions get nil answers then I suspect HMRC will realise the home just contains the usual contents that are likely to be more of a liability than an asset.

(That said I have not actually sent the forms to HMRC yet but would be amazed if I get any significant questions about the contents. You could also take a few photos if you are concerned just to show the type of stuff that was in the house.) 

xylophone

 I should think that HMRC are aware that  the second hand value of basic household goods is minimal - £500 would be a generous estimate?

JGB1955

I've heard £500 is a reasonable estimate too. It actually cost us £750 to clear my father's house...!

newbietoprobate

Thanks all. There was also a small bit of cash - based on what naedanger said, this is included with household contents? If so, think I'll put in £500 total

poppystar

newbietoprobate said:

Thanks all. There was also a small bit of cash - based on what naedanger said, this is included with household contents? If so, think I'll put in £500 total

I thought cash was a separate box on IHT400?

newbietoprobate

poppystar said:

newbietoprobate said:

Thanks all. There was also a small bit of cash - based on what naedanger said, this is included with household contents? If so, think I'll put in £500 total

I thought cash was a separate box on IHT400?

You're right, just checked the massive pile of forms on the floor. Will add it there then instead

naedanger

newbietoprobate said:

Thanks all. There was also a small bit of cash - based on what naedanger said, this is included with household contents? If so, think I'll put in £500 total

Sorry for the confusion. I meant I put in £1000 for contents and I also put in an amount for the cash that was left. That was all I entered on the form (from memory).