07/04/2026
ValuationsTaking on the role of executor is rarely straightforward, and when the estate includes commercial property, the responsibilities involved can feel particularly unfamiliar. Alongside the personal weight of administering a loved one's affairs, executors face specific legal and financial obligations that require professional support to navigate correctly.
One of the most important of those obligations is obtaining a professional valuation of any commercial property in the estate. Getting this right matters for HMRC compliance, for the beneficiaries, and for the executor's own protection. This guide explains what is required, how the process works, and where to turn for help.
Why does commercial property need to be valued for probate?
When someone dies, assets forming part of their estate are generally valued at their open market value at the date of death. This figure is required for two purposes: the probate application itself, which establishes the total value of the estate, and the calculation of any inheritance tax liability.
Commercial property is not exempt from this requirement. Regardless of whether the property is a small retail unit, a portfolio of investment assets, or a trading business premises, it must be professionally valued before probate can be granted and before any inheritance tax due can be calculated and paid.
It is worth understanding the difference between a probate valuation and a market appraisal. An agent's opinion of value is not always sufficient for probate purposes. HMRC requires a professional valuation that is prepared to a recognised standard and that can be defended if it is subsequently challenged. Our insight on probate value versus market value explains this distinction in more detail.
Executors who submit an inaccurate or unsupported valuation to HMRC risk penalties, delays to the probate process, and personal liability if the estate is later found to have underpaid tax. Instructing the right professional at the outset avoids all of these risks.
What is a RICS probate valuation?
A RICS probate valuation is a formal written valuation of a property prepared by a chartered surveyor in accordance with the RICS Valuation – Global Standards, commonly known as the Red Book. Red Book valuations follow a defined methodology, are prepared to a consistent professional standard, and carry the authority that HMRC requires.
Red Book valuations are the standard required by HMRC, lenders, and the courts precisely because they are prepared to a rigorous and independently auditable standard. An informal estimate, however well-intentioned, does not provide the same protection for executors or the same confidence for beneficiaries.
The valuer must be a qualified RICS member with relevant experience in the type of commercial property being valued. For commercial property, this means a specialist commercial valuer – not a residential valuer or a general practice surveyor without specific commercial expertise.
What types of commercial property require specialist valuation?
Commercial property covers a wide range of asset types, and the expertise required to value them varies accordingly. Executors should ensure that the valuer instructed has specific experience in the relevant property type.
The main categories include:
- Offices – Valued by reference to comparable lettings and sales, lease terms, and location.
- Retail – High street units, shopping centre spaces, retail parks, and trade counters each have distinct valuation characteristics.
- Industrial and logistics – Warehouses, distribution facilities, and light industrial units valued primarily by reference to rental evidence and yield
- Investment properties – Commercial spaces let to one or more tenants, where the valuation reflects the income stream and the investment market at the date of death
- Mixed-use assets – Buildings combining commercial and residential uses require careful treatment of each element
- Trading properties – Hotels, care homes, pubs, restaurants, and other properties where value is linked to trading potential rather than the building alone
Our commercial property valuations team covers the full range of commercial asset types, and our trade related valuations service provides specialist expertise for trading properties across care, hospitality, healthcare, and retail.
What are the inheritance tax implications of a commercial property valuation?
Inheritance tax is currently charged at 40 per cent on the value of an estate above the nil-rate band threshold of £325,000, though the position for any individual estate will depend on a range of factors including the available reliefs and exemptions.
Some commercial property may qualify for Business Property Relief or Agricultural Property Relief, which can significantly reduce or eliminate the inheritance tax liability on that asset. Whether these reliefs apply depends on the nature of the business, how the property was used, and how long it was held.
This is an area where the advice of a solicitor or tax adviser is essential. The probate valuation establishes the value of the asset, but the tax treatment of that asset and the reliefs that may apply, require specialist legal and tax advice that goes beyond the scope of a valuation.
Executors should ensure they have both professional streams of advice in place before submitting the inheritance tax return.
What should executors do if HMRC challenges the valuation?
HMRC's Valuation Office reviews probate valuations as part of the inheritance tax process and may propose a higher value than the figure submitted. This is not uncommon, and executors should not assume that HMRC's proposed figure is correct or that it must be accepted.
Where a challenge arises, the executor's position is considerably stronger if the original valuation was prepared to Red Book standard by a qualified specialist. A well-prepared RICS valuation sets out the comparable evidence and reasoning behind the figure in sufficient detail to form the basis of a negotiation.
Executors who receive a challenge from HMRC should seek professional support promptly. The original valuer is well-placed to respond to HMRC's assessment and to negotiate on the executor's behalf where the agency's proposed figure is not supported by the evidence.
How do executors instruct a commercial property valuation for probate?
The practical steps for instructing a probate valuation are straightforward, but timing matters. Here are some tips to consider:
Instruct early
The inheritance tax return must be submitted before probate is granted, and the valuation is required to complete that return. Commissioning the appraisal as early as possible avoids delays to the overall probate process.
Instruct the right valuer
The valuer must be RICS-qualified and must have specific experience in the type of commercial property being valued. A residential valuer or an agent's appraisal is not sufficient.
Provide access and documentation
The valuer will need access to the property and any relevant documentation, including leases, title information, recent rental or trading accounts, and any other material that affects value. Gathering this information at the outset speeds up the process.
Allow sufficient time
Commercial property valuations for probate are not produced overnight. A realistic timeframe is typically two to four weeks from instruction, depending on the complexity of the asset.
Speak to our valuations team
BTG Eddisons provides RICS-standard commercial property valuations for probate purposes across the full range of commercial asset types. Our valuers have the specialist expertise to value offices, retail, industrial, investment, and trading properties to the standard required by HMRC.
Simply call 0800 051 2593, email [email protected], or complete the get in touch form below to arrange a conversation with one of our team.
