HMRC Inheritance Tax: Customer Guide

How do I value the assets of an estate?

What value should I use?

For inheritance tax purposes, you have to use the open market value of the assets on the date the person died. This represents the realistic selling price of an asset, not an insurance value or replacement value.

You should be able to value some of the estate assets quite easily, for example, money in bank accounts or stocks and shares. In other instances, you may need the help of a professional valuer. If you do decide to employ a valuer, make sure you ask them to give you the 'open market value' of the asset.

If I do not know the exact value, can I estimate the value?

If you do not know the exact amount or value of any item, such as an income tax refund or household bill, do not put off applying for the grant just because you do not know the exact figures. You may use an estimated figure.

You should not guess at a value, but try to work out an estimate based on the information available to you.

If you are completing a form IHT 205 for an excepted estate and are including an estimate, tick the box alongside the figure concerned.

If you are completing a form IHT 200 and you are including an estimate, you must complete box L3 on page 8 of that form.

Do I have to get accurate values when the estate is very small?

No, you do not. If it is an excepted estate and the gross value of the estate is likely to be below £200,000, you can estimate the value of the assets. You should not guess at a value, but try to work out an estimate based on the information available to you. There is no need to tick the boxes on the IHT 205 in those circumstances.