Published 16 May 2026
A note before we start
Two valuations, two purposes
The single most useful idea for an executor handling a jewellery box is that there are really two valuations involved, not one. The first is the probate valuation: the open-market value of the items at the date of death, used to populate the estate accounts for HMRC and, where required, the Inheritance Tax forms. The second is the realisation valuation: what the items will actually fetch when they are sold to a real buyer in today's market, which is the figure that matters once probate is granted and the beneficiaries decide what to do with the pieces they receive.
The two are rarely the same number, and they should not be. A probate valuation reflects a deliberately conservative, defensible open-market figure as it stood on a specific past date. A realisation valuation reflects today's precious-metal market, today's buyer landscape, and the cost of actually moving items into cash. Confusing the two, by either overstating the probate value with today's strong gold price, or by understating the realisation figure based on the probate number, causes administrative friction with HMRC at one end and disappointment among beneficiaries at the other.
Probate-grade valuation: what HMRC actually asks for
For UK Inheritance Tax purposes (England and Wales; Scotland and Northern Ireland have parallel procedures), the executor or administrator must establish the open-market value of all estate assets at the date of death. For chattels, including jewellery, watches, silverware and coins, that means a market-realistic figure for what each item, or a comparable item, would have sold for at the date of death in a typical open-market transaction. The valuation feeds into either the IHT207 form for an excepted estate (typically a small, simple estate below the relevant threshold), the IHT400 form and its supporting schedules for a fully taxable estate, or the simplified reporting that applies when no IHT is due and probate is sought through the digital service.
HMRC's working position is that household chattels in aggregate should be valued realistically rather than at insurance-replacement value (which is typically higher) or at scrap value (which is typically lower for items in saleable retail condition). For most household jewellery boxes, the realistic open-market figure for the lot as a whole is closer to a high-street second-hand price than to either extreme. Where individual pieces are likely to attract HMRC scrutiny, a designer or branded watch, a piece valued in a previous insurance schedule, an item the deceased was known to own that does not appear in the estate accounts, a written valuation with provenance is the safer answer.
When you need a SoFA-qualified valuer
A SoFA-qualified valuer is a member of the Society of Fine Art Auctioneers and Valuers, the professional body whose members are commonly accepted by HMRC and by probate solicitors as competent to value chattels for probate purposes. The Royal Institution of Chartered Surveyors (RICS) also operates a Registered Valuer scheme that covers personal property; either is generally accepted. The point of using a recognised qualified valuer is that the resulting valuation is defensible in the event of any HMRC challenge, the valuer's professional indemnity stands behind the figure.
The practical question is: when does the estate genuinely need that level of formality, and when is a documented commercial valuation enough? In broad terms, a SoFA or RICS valuation is the right tool when: (a) any single piece is likely worth more than a few thousand pounds, particularly branded watches, signed jewellery (Cartier, Bulgari, signed period pieces) or unusual stones; (b) the estate is at or near the IHT threshold and the chattels figure is large enough to swing the tax position; (c) there is a dispute among beneficiaries about value; (d) the estate is being formally administered by a probate solicitor who specifies a qualified valuation.
A documented XRF assay from a precious-metals buyer is sufficient as supporting evidence, not a standalone probate valuation, when: (a) the items are ordinary household gold and silver scrap, broken chains, mixed lots, sentimental pieces with no obvious branded value; (b) the executor has carried out a reasonable open-market enquiry and the chattels figure is modest relative to the estate; (c) there is no realistic possibility of designer or collector premium on any specific piece. In that context a written, itemised XRF assay with the purity, weight and rate shown is exactly the evidence trail HMRC means by a realistic open-market figure, and can be supplied to the solicitor or accountant as a supporting document.
Realisation-grade valuation: what the items will actually sell for
Once probate is granted and assets are distributed, the second valuation comes into focus. The beneficiary or executor with permission to liquidate now needs to know what the items will actually fetch in today's market. This is realisation-grade valuation, and it is GoldPaid's natural role.
A realisation-grade postal valuation contains the same fields a probate valuation does, the item description, the confirmed purity, the weight, the rate used and the figure, but is built against today's live precious-metal rate rather than the rate at the date of death, and reflects the actual offer rather than an open-market estimate. For an executor or beneficiary, the realisation figure is the one that turns the estate's paperwork into actual cash.
Importantly, the realisation figure is also the CGT base for any beneficiary who later sells. The CGT base cost of inherited items is generally the probate value (not the original purchase price), so if the realisation figure is below the probate value there is no chargeable gain. The realisation figure feeds the actual CGT calculation, while the probate figure sets the starting line.
A worked example: a modest estate
Consider a typical UK estate where the deceased's jewellery box contains: a 9ct wedding band (3g), a 9ct curb chain (28g), an 18ct engagement ring with a small diamond (4g), a silver charm bracelet (24g, sterling), and a small 22ct Indian gold pendant inherited from a parent (8g). No designer pieces, no signed items, nothing the deceased had insured separately.
For the probate paperwork at the date of death, an executor should establish an open-market figure for the lot. A reasonable approach is to use the gold-content value at the rate prevailing on the date of death, plus a modest premium for the 18ct engagement ring (because of the diamond, which has a separate small open-market value). A documented XRF assay from a precious-metals buyer, run against the historic spot rate for that date, provides a clean evidence trail. For most estates of this size, no SoFA valuer is required.
After probate, when the beneficiary decides to sell the everyday pieces and keep the engagement ring for sentimental reasons, the realisation figure is built against today's rate. The 9ct band, 9ct chain, sterling bracelet and 22ct pendant are XRF-assayed, weighed and offered against the live market. If today's rate is higher than the date-of-death rate (commonly the case in 2026 given the run-up over recent years), the realisation figure may exceed the probate figure, producing a small CGT consideration for the beneficiary; if lower, the loss is generally not allowable but the sale is straightforward.
Common pitfalls executors run into
- Using insurance-replacement value as probate value. Insurance schedules are typically based on retail replacement cost, which is significantly higher than open-market value. HMRC expects open-market value, not replacement.
- Selling items before probate is granted. Until the Grant of Probate (or Letters of Administration) is issued, the executor does not yet have formal authority to dispose of estate assets. Selling early can complicate the administration and, in disputed estates, expose the executor personally.
- Mixing valuations across dates. A probate valuation is at the date of death. A realisation valuation is today. Using one date for one item and a different date for another is exactly the kind of inconsistency that draws HMRC enquiry.
- Treating dental gold or scrap as worthless. Dental gold is an alloy with real value (see our dental-gold guide); broken chains and unhallmarked pieces are fully payable on XRF-confirmed content. Writing such items off the estate accounts at zero is both inaccurate and disadvantageous to the beneficiaries.
- Not getting a written valuation at all. Even modest jewellery should be valued on paper. A WhatsApp photo response or a verbal counter offer is not evidence. A written, itemised XRF assay is.
How GoldPaid fits into the executor's workflow
For modest household jewellery, dental gold, sterling silver and ordinary scrap, GoldPaid provides realisation-grade postal valuations against the live rate, with a written PDF the executor can attach to the estate file. For dated-valuation work, where the executor needs the open-market figure as at a past date of death, we run the same XRF assay and weighing process but apply the historic spot rate from the relevant date; the resulting valuation is supplied in writing for inclusion in the probate paperwork.
Where the lot includes anything we suspect carries collector premium beyond its metal value, a signed designer piece, an unusual coin, a watch with a recognisable name, we tell the executor and recommend a specialist. We would rather a piece end up where it can be priced properly than absorb collector value into a metal-only offer.
Common questions
What is the difference between a probate valuation and a realisation valuation?
A probate valuation is the open-market value at the date of death, used by HMRC for Inheritance Tax. A realisation valuation is what the items will actually sell for today. They are two different numbers for two different purposes and rarely match exactly.
Do I need a SoFA-qualified valuer for ordinary jewellery?
Not usually. For modest household jewellery without designer pieces or known branded value, a documented XRF assay with purity, weight and rate shown is generally acceptable as supporting evidence. SoFA or RICS valuations matter for high-value individual pieces, estates near the IHT threshold, and disputed valuations.
Can GoldPaid value items at the date of death rather than today?
Yes. The same XRF assay and weighing process is applied, with the historic spot rate from the relevant date used in the working. The resulting valuation is supplied in writing for inclusion in the probate paperwork.
When can the executor actually sell estate items?
Once the Grant of Probate (or Letters of Administration) is issued, or in some cases earlier with the agreement of all beneficiaries and the solicitor. Selling before the Grant is unusual and should be discussed with the solicitor first to avoid complicating the administration.
How does the probate value affect CGT for beneficiaries who later sell?
The CGT base cost of inherited items is generally the probate value. If a beneficiary later sells below the probate value, there is no chargeable gain; above it, ordinary chattel-exemption and annual-allowance rules apply (the £6,000 chattel exemption per item is the usual first reference point). This is general information, not tax advice.
Does HMRC accept a postal buyer's offer as a probate valuation?
A written, itemised XRF assay from a precious-metals buyer is acceptable supporting evidence for ordinary chattels in a modest estate, particularly when run against the date-of-death rate. For higher-value items or scrutinised estates, a SoFA or RICS valuation is the safer answer. The probate solicitor on the estate should always have the final say.
What about silver, dental gold and unhallmarked pieces?
All have real value and should be included in the estate accounts at honest figures. Silver is bought against the 925/958/800 standards; dental gold is bought against XRF-measured fine content; unhallmarked but solid pieces are assayed and paid on actual content rather than written off.
Is there a partner programme for probate solicitors and clearance firms?
Yes. The B2B partner pack covers referral terms, the supplier pack for client-facing material, and the bulk-lot workflow for estates with significant chattels. Request it on WhatsApp 07375 071158 or by email via <a href="/probate-and-inheritance">the probate page</a>.