All assets are meant to be valued as if they had been sold on the day after death. I think that’s the correct date for valuation as you cant say what time on the day necessarily a person dies. Many of us take the date of death I know but technically I think that’s incorrect.
However addressing the main point I don’t think we can ignore the lack of market. No one would ignore a heavy stock market fall which occurred on the day of death so why ignore a collapse of the property market. Im seeing probate valuations based on pre Covid 19 comparables. I can understand that as there are no current comparables however it doesn’'t reflect the current situation. To take my previous analogy we dont value shares on last weeks prices.
Similarly we have seen property prices rise and fall over the years. This may be a sudden sharp shock but what is the logic of ignoring it. Either you take the date of death value or you dont.
At one end you could argue the property has no value as no one will buy it. That’s probably a bit too extreme. However I had a probate sale fall through because we wouldn’t agree to drop the price by 20%.
I havent seen any guidance on this. You can understand why HMRC are wanting to lay low but this uncertainty isnt really in anyone’s interest.
We need STEP and RICS to agree something with HMRC
Nigel George
Garner & Hancock