Probate Value vs Market Value: What’s the Difference?

For most estates, probate value and market value are effectively the same thing. Both terms refer to what an asset would fetch on the open market, and HMRC uses that definition for inheritance tax purposes. But there is one critical difference: timing. HMRC requires the value at the date of death — not the value when the valuation report is written, and not what the same items would sell for today.

This guide covers how probate value is defined in law, why the date of death is the fixed reference point regardless of when the assessment takes place, and the situations where the gap between probate value and current market value becomes meaningful. It is the second guide in this series. The first covers what a probate valuation is and how the process works. The third covers how much a probate valuation costs.

This is a general guide only and does not constitute legal or financial advice. For official guidance on probate and inheritance tax in England and Wales, visit GOV.UK.

In legal terms, yes — with an important caveat. The Inheritance Tax Act 1984 defines value for probate purposes as the open market value at the date of death. That is precisely what most people mean when they say “market value”: the price an asset would realistically fetch between a willing buyer and a willing seller on the open market.

Where the two terms diverge is in timing. “Market value” used loosely refers to what something is worth now. “Probate value” is always anchored to a specific date — the date the person died. If that date was eighteen months ago, the probate value is what the item was worth eighteen months ago, even if the valuation report is being produced today.

For most everyday household contents — furniture, appliances, general personal effects — this distinction rarely makes a practical difference. Values for those items are typically low and stable. The distinction matters most when dealing with assets whose values fluctuate over time.

Section 160 of the Inheritance Tax Act 1984 sets out the definition precisely:

“The value at any time of any property shall for the purposes of this Act be the price which the property might reasonably be expected to fetch if sold in the open market at that time.”

“At that time” is the operative phrase. For probate, that time is the date of death. The definition does not allow for what the property is insured for, what it cost to buy, or what a retailer charges for something comparable today. It is specifically the price a willing buyer would pay on the open market, on the day the person died.

A professional probate valuator must research what prices looked like at that specific point. For recent deaths, current market data is a reasonable proxy. For estates being administered many months or even years after the death, the valuator needs access to historic auction records and comparable sales data from the relevant period.

In practice, the gap between probate value and current market value matters most for certain categories of asset:

Antiques, art and collectables. These markets fluctuate based on trends, auction results and buyer demand. An item worth £3,000 on the date of death may be worth £4,500 a year later, or £2,000. A probate valuator must reflect conditions as they were at the date of death, using comparable sales from that period rather than current prices.

Jewellery and precious metals. Gold and silver prices move daily. Estates with significant jewellery or silverware holdings require the valuator to apply the spot price as it stood on the date of death, not at the time of the visit.

Property in volatile markets. If the deceased owned property and prices have moved significantly since the death, current estate agent valuations will not be an accurate reflection of probate value. A formal RICS valuation backdated to the date of death is required in those cases.

Standard household contents. For most items the difference is negligible. Modern electronics, standard furniture and everyday effects depreciate quickly and do not change meaningfully in value over a period of months. For these, current resale prices are a reasonable and accepted proxy.

You do not need to arrange a valuation the day after a death. But leaving it for a year or more does create extra work — both for the valuator, who needs to reconstruct historic market conditions, and for the executor, who may face questions from HMRC if the values cannot be evidenced clearly.

It is also worth knowing that HMRC has the right to query a probate valuation after submission. Its District Valuer Services can challenge the figures, particularly on property and high-value personal items. A professionally produced report with comparable sales evidence is significantly easier to defend than an estimate, or a valuation based on current prices applied to a date some time in the past.

For most estates, the practical message is straightforward: use a professional valuator, make sure the report references the date of death rather than the date of the visit, and do not use insurance replacement values or original purchase prices. Both will produce the wrong figure.

Clear It Out carries out probate valuations for families, solicitors and executors across London, Surrey and Kent. Our written reports are formatted to HMRC requirements, reference the date of death as the valuation date, and are delivered within three working days of the visit.

Where a property also needs clearing, the valuation visit can be combined with a clearance consultation in a single appointment. We handle probate clearances and house contents buying alongside the valuation service, which means one visit can cover the full picture.

To arrange a valuation or ask a question, call us on 020 8050 5832 or use the Get a Free Quote form. We are available seven days a week.