What HMRC actually asks for on the IHT forms
Probate valuations go on the IHT400 estate return, or the simpler IHT205 style summary where the estate qualifies. HMRC's own guidance asks for the open market value: what a willing buyer would have paid a willing seller on the date of death, not the price the deceased paid for it years earlier, and not a trade-in figure from a dealer looking to buy stock cheaply.
| What HMRC wants | What it is not |
|---|---|
| Open market value at the date of death | The original purchase price |
| A figure a private buyer would realistically pay | A dealer part exchange offer |
| Evidence dated to the date of death | A valuation pulled weeks or months later |
A free valuation is enough for most estates
For an ordinary car, an instant online valuation captured on or close to the date of death is treated as adequate supporting evidence. Save it properly: a screenshot or printed page showing the reg plate, mileage entered, the value shown, and the date, kept with the rest of the estate paperwork. If HMRC ever queries the figure, that dated record is what backs it up.
- Enter the mileage as it stood on the date of death, not today's figure if probate drags on for months.
- Keep the dated screenshot or printout with the IHT forms, not just in an email that might get deleted.
- Use the reg plate rather than a generic make and model search, since trim and options move the number.
- Note down which tool produced the figure, in case the executor or solicitor asks later.
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When a paid valuation is worth the fee
A specialist valuer earns their money on the cars where a generic online tool genuinely struggles: classics, low production runs, and anything with collector demand that doesn't track ordinary depreciation. The other trigger is the inheritance tax threshold itself. Where the estate sits close to the nil rate band, or the car is one of several high value assets under scrutiny, a written valuation from a qualified valuer gives HMRC less room to challenge the figure later, and shifts the burden of proof off the executor.
| Car type | Free online valuation | Paid specialist valuer |
|---|---|---|
| Ordinary car, everyday model | Sufficient on its own | Rarely needed |
| Estate close to the IHT threshold | Useful first check | Worth the fee for the paper trail |
| Classic, rare, or low mileage collector car | Often inaccurate | Recommended |
Mistakes that cause problems with an estate's car value
Executors usually get this right. The cases that turn into a headache follow a small set of patterns.
- Valuing the car months after death instead of at the actual date, once mileage and market conditions have moved.
- Using a dealer part exchange quote, which sits below open market value and can undervalue the estate.
- Skipping outstanding finance on the car, which reduces what actually belongs to the estate, not the car's gross value.
- Forgetting a private plate that adds real value if it's being sold with the car rather than retained.
Get the figure, then decide what to do with the car
Once the estate value is settled, the executor still has to sell the car, transfer it to a beneficiary, or keep it running until probate clears. A reg based valuation takes two minutes and needs nothing beyond the reg plate and mileage, which makes it the natural first step even before deciding whether a paid valuer is needed. For the general mechanics of how a valuation is built, see our guide on how much your car is worth. See how selling through a verified buyer works on the CARS4YOU get started page.
Value, compare and close with DriveMe
Exact price, verified sellers and an AI assistant, right in the app.