To value land for probate, you work out its open market value at the date of death: the price the land would reasonably be expected to fetch if sold on the open market on the day the owner died (HMRC Inheritance Tax Manual, IHTM09703, s.160 IHTA 1984, as at August 2026, subject to change).
For anything beyond a small, straightforward plot, that normally means a written valuation from a chartered surveyor registered with the Royal Institution of Chartered Surveyors (RICS). The personal representative then includes that figure in the estate's total and reports it to HMRC. This guide explains what "value" means for land, how the figure is produced, and how it is reported. Figures are current as at August 2026 and are subject to change.
What "value" means for land at probate
The legal standard is open market value. HMRC defines this as the price an asset "might reasonably be expected to fetch if sold in the open market" at the relevant time, which for probate is the moment of death (HMRC Inheritance Tax Manual, IHTM09703, as at August 2026, subject to change). Two points follow from this. First, the value is fixed at the date of death, so later movements in the market do not change the probate figure. Second, the assumption is a sale between a willing buyer and a willing seller, which is why an insurance rebuild cost, a council tax band, or a quick "we will buy it now" cash offer are not the right measure.
Land is often harder to value than a standard house because its worth can turn on planning status, access, tenancies and rights over it. A field with realistic prospects of development, for example, can carry "hope value" well above its agricultural worth, and this is one of the areas HMRC examines most closely.
Common types of land and what affects the figure
The word "land" covers a wide range of interests, and the right approach depends on which you are dealing with. Reporting is done on form IHT405, the schedule for houses, land, buildings and interests in land that attaches to the full inheritance tax account (gov.uk, form IHT405, as at August 2026, subject to change).
| Type of land | What tends to drive the value |
|---|---|
| Garden, paddock or amenity land | Size, access, whether it can be sold separately from a house, and any planning potential. |
| Agricultural land | Acreage, soil grade, tenancies, and whether agricultural or business reliefs may apply. |
| Development or "hope value" land | The realistic prospect of planning permission, which can lift value above agricultural use. |
| A share of jointly owned land | An undivided share is often worth less than a simple fraction of the whole, reflecting the difficulty of selling a part. |
| Tenanted or let land | The terms of any lease or tenancy, which can reduce the value of the owner's interest. |
General guidance only. Every parcel of land is different and the treatment of a specific interest depends on its own facts.
Getting a valuation you can rely on
HMRC recommends using a professional to value an estate so that the figures are as accurate as possible (gov.uk, valuing the estate of someone who has died, as at August 2026, subject to change). For land, a RICS "Red Book" valuation carries particular weight because it is prepared to a recognised professional standard and is written specifically as at the date of death. There are broadly three routes, and the right one depends on the value and complexity of the land.
| Approach | When it tends to suit |
|---|---|
| Personal representative's own estimate | Very low-value, simple parcels within a small estate where no inheritance tax is in question. |
| Written estate agent appraisal | Straightforward residential plots of modest value; quicker, though it carries less weight if HMRC queries it. |
| RICS Red Book valuation | Higher-value, agricultural, development, tenanted or part-share land, and anything likely to attract scrutiny. |
Whichever route is used, the valuation should be dated at the date of death, describe the land and its planning and tenure position, and be kept on file. If the estate later sells the land, the sale price is a useful cross-check but it does not replace the date-of-death figure. Because HMRC can look back at valuations for a number of years, a documented, professional figure is far easier to stand behind than a rough estimate. If you are new to the wider process, our guide to what probate is and how it works sets out where valuation fits in.
Reporting land values to HMRC
Once the land is valued, its figure forms part of the estate's total, which decides both the probate route and any inheritance tax. The standard nil-rate band is £325,000, with a residence nil-rate band of up to £175,000 where a home passes to direct descendants, and the standard inheritance tax rate is 40% on the part of an estate above the available thresholds (gov.uk/inheritance-tax, as at August 2026, subject to change). These thresholds are frozen until 5 April 2031 (gov.uk, Inheritance Tax thresholds (Budget 2025), as at August 2026, subject to change), so as land values rise more estates are drawn in, which is one reason accurate figures matter. Our inheritance tax guide explains how the bands combine.
| Step | Key point (as at August 2026) |
|---|---|
| Report the estate | Many estates are "excepted" and report values through the probate application; where a full account is needed you send form IHT400 with IHT405 for the land (gov.uk). |
| Deadline to report tax | If inheritance tax is due, report within one year of death using form IHT400 (gov.uk). |
| Deadline to pay | Inheritance tax must be paid by the end of the sixth month after the person died (gov.uk). |
| Paying by instalments | Tax on land and buildings can usually be paid in yearly instalments over ten years, with interest (gov.uk). |
All figures and rules subject to change. Sources dated and linked as at August 2026.
What happens if HMRC disagrees with the figure
HMRC has its own property experts. Land valuations, particularly higher-value, agricultural, tenanted or development parcels, can be referred to the Valuation Office Agency, whose District Valuer is a chartered surveyor acting for HMRC (gov.uk, Valuation Office Agency, as at August 2026). If the District Valuer considers the figure too low, the personal representative may be asked to justify it, and additional tax, interest and penalties can follow an under-valuation. A clear RICS valuation, prepared as at the date of death and supported by evidence of comparable land, is the strongest response to that kind of query. A personal representative who signs off a figure they cannot support may also face personal exposure, which is a further reason to document the basis of the valuation.