Does HMRC always check the property value?

Not always, but the district valuer reviews values where tax is at stake or the figure looks unsupported. A documented valuation basis is the best protection.

Forms · 5 min read

IHT405: reporting the property in an estate

IHT405 describes every interest in land the deceased held. HMRC's district valuer reads it, so accuracy and a clear valuation basis matter more than speed.

Written and reviewed by Ramani Gill, Founder & CEO — Solicitor, TEP, BA, LLM. Last reviewed 2026-08-19.

What each entry needs

The full address and a description of the property
Tenure: freehold or leasehold, with the unexpired term
Whether it was the deceased's residence, let, or vacant
The share owned, and how it was held
The open market value at the date of death, and who provided it

The valuation basis

Basis	When it is appropriate
Estate agent appraisals	Ordinary residential property, no tax at stake
RICS red book valuation	Tax payable, unusual property, or a contested value
Sale price shortly after death	Strong evidence where the sale was at arm's length

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Points that change the figure

A joint share may attract a discount of around 10% to 15% where the co-owner is not a spouse
A property let on a protected or assured tenancy is worth less than vacant possession
Development potential increases value even if it is not being exploited
Poor condition reduces value, but say so and evidence it

Where mortgages go

The mortgage is a liability on the IHT400, not a deduction on IHT405. Report the property at its gross value and the debt separately.

GOV.UK — Form IHT405

Common questions

Does HMRC always check the property value?: Not always, but the district valuer reviews values where tax is at stake or the figure looks unsupported. A documented valuation basis is the best protection.

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