What Is a Probate Jewellery Valuation?
A probate valuation is a professional assessment of a deceased person's jewellery, carried out to establish the open market value of each item at the date of death. This figure is used to calculate the total value of the estate for inheritance tax purposes and is reported to HMRC on the IHT400 or IHT205 form.
Unlike an insurance valuation, which gives the cost of replacing an item with a new equivalent, a probate valuation reflects what the piece would realistically sell for on the open market. The distinction matters — using the wrong type of valuation can lead to overpaying inheritance tax or, worse, an HMRC investigation.
As an executor or administrator of an estate, getting jewellery valuations right is one of your legal responsibilities. This guide covers exactly what you need to know.
HMRC Requirements for Probate Valuations
HMRC requires that all assets in an estate are valued at their open market value at the date of death. This obligation comes from the Inheritance Tax Act 1984, section 160, which defines open market value as the price an item “might reasonably be expected to fetch if sold in the open market at that time.”
For jewellery, this means you cannot simply guess what items are worth. HMRC has district valuers who can — and do — challenge estate valuations they consider too low. If you undervalue jewellery in a probate return, you risk the estate owing additional tax, interest, and potentially penalties.
HMRC can challenge probate valuations
HMRC's Inheritance Tax team reviews estate returns and may request a second opinion from their own valuers or the Valuation Office Agency. If the revised value is significantly higher, the estate will face additional tax, interest from the date of death, and possible penalties. A professional valuation from a qualified, independent valuer is your strongest protection.
There is no legal exemption for “costume jewellery” or items of low value — all jewellery in the estate should be accounted for. However, the level of formality required depends on the value of individual items.
Open Market Value vs Replacement Value
The concept of open market value is central to probate valuations. It represents the price a willing buyer would pay a willing seller, assuming both parties are reasonably informed and neither is under pressure to transact.
This is fundamentally different from the replacement value used in insurance valuations, which reflects the retail cost of buying an equivalent new item. The difference can be substantial:
Example: A diamond engagement ring might have an insurance replacement value of £4,500 (the cost of buying an equivalent new ring from a jeweller) but a probate open market value of just £2,800 (what a willing buyer would actually pay for the second-hand ring). Using the insurance figure for probate would overstate the estate by £1,700 — potentially costing the estate hundreds of pounds in unnecessary inheritance tax.
This is why existing insurance valuations cannot be used for probate. A separate valuation is always required, carried out on the correct basis of value.
The £1,500 Threshold Rule
HMRC guidance draws a practical line at £1,500 for individual items of jewellery. How you handle the valuation depends on which side of this threshold each item falls:
Under £1,500 per item
The executor can provide a reasonable estimate of each item's value. A professional valuation is not strictly required, but is advisable for items close to the threshold or where the executor is unsure. Group descriptions (e.g. “assorted costume jewellery — £200”) are acceptable for low-value items.
Over £1,500 per item
A professional valuation from a qualified, independent valuer is expected. Each item should be individually described and valued, with a written report suitable for submission to HMRC. The valuer should state the open market value at the date of death.
If you're unsure whether an item crosses the threshold, err on the side of caution and get a professional opinion. The cost of a valuation is far less than the potential cost of an HMRC challenge.
What Executors Need to Do: A Step-by-Step Guide
As an executor, managing the jewellery in an estate can feel daunting — particularly if the deceased had a large collection or items of significant value. Here is a clear process to follow:
- Gather and secure all items. Collect all jewellery from the deceased's home, safe deposit boxes, and anywhere else items may be stored. Photograph everything before moving it, and store items securely — ideally in a safe or with your solicitor.
- Check for existing documentation. Look for previous valuation certificates, purchase receipts, insurance schedules, and any correspondence with jewellers. These provide useful context for the valuer, though they cannot substitute for a fresh probate valuation.
- Separate high-value from low-value items. Make an initial assessment of which items are likely to exceed the £1,500 threshold. When in doubt, include the item in the professional valuation.
- Commission a professional valuation. Find a qualified valuer experienced in probate work. Provide them with all items requiring valuation, the date of death, and any supporting documentation you have gathered.
- Report values to HMRC. Include the jewellery values on the appropriate inheritance tax form (IHT400 for taxable estates, IHT205 for excepted estates). Keep the full valuation report with the estate papers — HMRC may request to see it.
How Much Does a Probate Valuation Cost?
Probate valuation fees vary depending on the number of items, their complexity, and whether the valuer needs to travel. The table below gives typical UK costs:
| Service | Typical Cost | Notes |
|---|---|---|
| Single item (simple) | £25–£50 | Plain gold band, simple chain, etc. |
| Single item (complex) | £50–£75 | Diamond ring, branded watch, gemstone piece |
| Small collection (3–5 items) | £100–£150 | Per-item rate typically reduces |
| Medium collection (6–15 items) | £150–£250 | Most common for estate work |
| Large collection (15+ items) | £250–£300+ | May require multiple appointments |
| Home visit supplement | £30–£75 | If the valuer travels to the property |
| Specialist items | Varies | Antique or period pieces may need a specialist |
Valuation fees are a legitimate estate expense and can be deducted from the estate before calculating inheritance tax. Keep receipts for all valuation work. For more on general jewellery valuation costs, see our full cost guide.
Finding a Qualified Probate Valuer
Not every jeweller is qualified to provide valuations that HMRC will accept. For probate work, you need someone with recognised credentials, professional indemnity insurance, and specific experience in estate valuations. Look for these qualifications:
Institute of Registered Valuers (IRV)
The gold standard for UK jewellery valuers. IRV members are regulated by the National Association of Jewellers and must follow the RICS Red Book valuation standards. Look for the letters "IRV" after their name.
Jewellery Valuers Association (JVA)
An independent body of specialist jewellery valuers. JVA members undergo rigorous assessment and carry professional indemnity insurance as a condition of membership.
Gem-A Qualifications (FGA / DGA)
The Gemmological Association of Great Britain awards the FGA (Fellow) and DGA (Diamond) diplomas. These demonstrate technical expertise in identifying and grading gemstones — essential for accurate valuations of diamond and coloured stone jewellery.
Always confirm that the valuer has experience with probate work specifically — not all insurance valuers are familiar with open market valuation methodology. For more on valuer qualifications, see our qualifications guide.
Get matched with a qualified probate valuer — we connect you with IRV-registered, HMRC-experienced professionals across the UK.
Probate Valuation Timeline
Timing matters in probate. Inheritance tax is due six months after the end of the month in which the person died. Missing this deadline means the estate starts accruing interest on any tax owed.
The 6-month IHT deadline
Inheritance tax must be paid within six months of the end of the month of death. For example, if someone dies on 15 March, the deadline is 30 September. Interest accrues from this date on any unpaid tax, even if the probate application is still being processed. Commission valuations early to avoid delays.
In practice, most jewellery valuations can be completed within one to two weeks. However, if items are in multiple locations, require specialist assessment (e.g. antique pieces), or the valuer has a waiting list, it can take longer. Start the process as soon as practicable after death.
Penalties for Getting Valuations Wrong
The consequences of inaccurate probate valuations depend on whether HMRC considers the error to be innocent, careless, or deliberate. The difference between an informal estimate and a professional valuation can be significant:
- No documented methodology for HMRC
- Easily challenged by district valuers
- Estate liable for additional tax plus interest
- Penalties of 30–100% for careless or deliberate errors
- Executor personally liable if negligent
- Recognised methodology and documented reasoning
- Defence against HMRC challenges
- Professional indemnity insurance as backup
- Demonstrates “reasonable care” by executor
- Valuer accountable for their professional opinion
Even if HMRC adjusts a professional valuation upwards, the fact that you instructed a qualified valuer demonstrates reasonable care — significantly reducing the risk of penalties being levied against the estate or the executor personally.
Probate vs Insurance Valuations: Key Differences
Executors often ask whether existing insurance valuations can be used for probate. The short answer is no — they serve different purposes and produce different figures. Here is a direct comparison:
| Factor | Probate | Insurance |
|---|---|---|
| Value basis | Open market value | Replacement value (retail) |
| Purpose | HMRC estate reporting | Insurance coverage |
| Typical figure | Lower (what it would sell for) | Higher (what it costs to replace) |
| Valuation date | Date of death | Current date |
| Who needs it | Executors / administrators | Policyholders |
| Update frequency | Once (at time of death) | Every 3–5 years |
| Tax impact | Higher value = more IHT | Higher value = higher premiums |
The key takeaway: always ensure your valuation states the correct basis of value for its intended purpose. A probate valuation used for insurance would leave you under-insured; an insurance valuation used for probate would overstate the estate. For a deeper comparison of all valuation types, see our insurance vs probate vs resale guide.
Frequently Asked Questions About Probate Jewellery Valuations
Do I need a professional valuation for jewellery in a probate estate?
If any single item of jewellery is worth more than £1,500, HMRC expects a professional valuation from a qualified, independent valuer. For items below this threshold, a reasonable estimate by the executor may be accepted — but a professional opinion removes the risk of HMRC challenging your figures.
What is the difference between probate and insurance jewellery valuations?
Probate valuations state the open market value — what an item would realistically sell for between a willing buyer and seller. Insurance valuations state the replacement value — what it would cost to buy an equivalent new item from a retailer. Insurance values are typically 30–50% higher than probate values for the same piece.
How much does a probate jewellery valuation cost?
Costs range from £25 for a simple single item to £300 or more for large collections. Most individual pieces cost £50–£75 to value, with discounts for multiple items. The fee is a legitimate estate expense and can be deducted before calculating inheritance tax.
How long does a probate valuation take?
A straightforward valuation can be completed in 1–3 days once items have been examined. Complex collections or items requiring specialist assessment may take up to two weeks. The valuation appointment itself usually takes 30–60 minutes depending on the number of items.
Can I use an existing insurance valuation for probate?
No. Insurance valuations state a replacement value, which is significantly higher than the open market value required for probate. Using an insurance valuation would overstate the estate and could result in the estate paying more inheritance tax than necessary.
What happens if HMRC thinks my probate valuation is too low?
HMRC can challenge valuations they believe are understated. They may request a second independent valuation, and if the revised figure is significantly higher, the estate could face additional tax, interest charges, and in cases of deliberate undervaluation, penalties of up to 100% of the unpaid tax.
Who is qualified to carry out a probate jewellery valuation?
Look for valuers registered with the Institute of Registered Valuers (IRV) through the National Association of Jewellers, members of the Jewellery Valuers Association (JVA), or holders of Gem-A qualifications (FGA or DGA). The valuer should carry professional indemnity insurance and have specific experience with probate work.
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