What Is "Open Market Value" for a Vehicle in Probate?
HMRC doesn't want to know what a car is worth today, or what it would cost to insure. For probate, they want its open market value on one specific date: the date the person died, in whatever condition it was actually in. That distinction matters more than most executors expect.
What "open market value" actually means
Open market value is the price a vehicle would realistically achieve in a sale between a willing buyer and a willing seller, neither under pressure, with the vehicle in its actual condition. It is not a showroom price for a pristine example of the same model, and it is not what an insurer would pay to replace it. It is what this specific vehicle, in this specific state, would genuinely have sold for.
Why the date of death matters
Vehicle values move, sometimes noticeably over a matter of months, depending on demand, condition, and the wider market for that make and model. HMRC's requirement is that the vehicle is valued as it stood on the date of death, not on the date probate is applied for, and not on today's date if some time has passed since. A valuation prepared months after the fact still needs to establish what the vehicle was genuinely worth back on that specific date.
When HMRC advises a professional valuation
HMRC's notes to the inheritance tax account say you do not have to get a professional valuation for ordinary household and personal goods where you can use publicly available data to estimate the value, and they give second-hand cars as the example. The same passage then adds: "If you think any item may be worth more than £1,500, or you're not sure, we advise you to get a professional valuation." You may still see a £500 figure quoted online. It comes from an older version of HMRC's notes, not the current one.
So for an ordinary car with plenty of similar examples on sale, an executor can reasonably estimate the figure themselves. Where the car is likely to be worth more than £1,500, or it is unusual, damaged, modified, imported or classic, and the public data doesn't really describe it, that is the situation HMRC's advice is aimed at. The reasoning is straightforward. An unsupported figure that's too high means the estate pays more inheritance tax than it needs to. One that's too low, or that can't be explained if HMRC asks, risks a query and a difficult conversation for the executor later. A documented, independent valuation protects against both.
Why a vehicle's condition at death, not a "typical" example, is what counts
This is where a generic guide price falls short. If the vehicle had unrepaired damage, an unusually high mileage, or was mid-restoration when its owner died, that is what gets valued, not a clean example of the same make and model. Equally, if it was in excellent, well-documented condition, that should be reflected too. The valuation needs to be about this vehicle, as it genuinely was, not an average drawn from a database of similar cars in unknown condition.
Frequently asked questions
What does "open market value" mean for probate?
The price the vehicle would realistically have achieved in a sale between a willing buyer and a willing seller, in its actual condition, on the date of the person's death, not a showroom price or an insurance replacement value.
Do I need a professional valuation for a car for probate?
Not always. HMRC's notes say you do not have to get one for ordinary goods where publicly available data can estimate the value, and give second-hand cars as the example. The same notes advise a professional valuation if you think an item may be worth more than £1,500, or you're not sure.
What if the car needs restoration or has undeclared damage?
The valuation should reflect the vehicle's genuine condition on the date of death, including any damage or work it needs. Presenting it as being in better condition than it actually was risks over-declaring the estate's value.
Why not just use a trade guide price for probate?
A trade guide gives an average figure for a typical example of that make and model. Probate values need to reflect the specific vehicle's actual condition, mileage and history on a specific date, which a generic guide figure doesn't capture.
Handling a vehicle as part of an estate?
We prepare independent, HMRC-ready probate valuations reflecting the vehicle's actual condition on the date of death, usually within a few hours.
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