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Civil Fraud Quarterly Round-Up: Q4 2025
Mary Young
The valuation of personal assets—such as artwork, antiques, and jewellery—is a critical consideration in a range of legal, financial, and estate planning contexts. Whether prompted by divorce, inheritance, insurance, or general curiosity, an accurate and defensible valuation is essential. The process, however, is nuanced and requires careful attention to both methodology and documentation to ensure that valuations withstand scrutiny by courts, auction houses, or tax authorities.
What Constitutes a Robust Valuation?
A credible valuation is not reserved solely for high-profile items. For any asset, the fundamental question is: what would a knowledgeable buyer pay a willing seller, today, in an open market? Only a qualified expert can provide a reliable answer to this question, particularly for valuable or unusual items. Engaging a specialist is strongly recommended, as their expertise is indispensable.
It is also essential to clarify the purpose of the valuation at the outset. The requirements for probate, insurance, or sale each differ and necessitate distinct approaches and documentation.
Key Considerations for Instructing a Valuer
Obtain Current Valuations: Do not rely on historic valuations. Markets and trends evolve; it is prudent to commission a fresh valuation for significant events and to update valuations regularly, particularly following market fluctuations.
Provide Comprehensive Instructions: Clearly communicate to the expert the reason for the valuation Supply all relevant information, including provenance and details of any restoration work undertaken.
Request Transparency and Documentation: Ask the valuer to explain their methodology and reasoning. Always insist on a formal, written report that details the basis of the valuation and the evidence relied upon.
3. Q&A: Asset Valuation in Practice
Q: Is it necessary to engage a professional valuer or can online research suffice?
A: While online resources may offer a general indication of value, they are not a substitute for a formal valuation by a qualified expert. Professional valuers possess the requisite market knowledge, understand the significance of provenance and condition, and can produce written reports suitable for legal, tax, or insurance purposes. A robust valuation is grounded in evidence and professional judgement.
Q: What are the most common mistakes made during the valuation process?
A: The most frequent errors include relying on outdated or informal valuations and failing to provide the valuer with comprehensive information, such as restoration history or provenance. Transparency is essential; the more information provided, the more accurate and defensible the valuation.
Q: What methodology do professional valuers use to determine value?
A: The standard approach is to establish the open market value—namely, the price a willing buyer would pay a willing seller in the current market. Valuers consider recent sales of comparable items, the asset’s condition and provenance, and prevailing market trends. For jewellery, intrinsic material value and independent grading reports are also taken into account.
Q: What should be included in a formal valuation report?
A: A formal valuation report should clearly state the purpose of the valuation, the basis of value adopted (e.g., open market value), and provide details of comparable sales. For legal proceedings, it is essential that the report is sufficiently detailed and robust to withstand scrutiny.
Q: How does valuation support inheritance tax or estate planning?
A: Accurate valuations are critical for probate and inheritance tax calculations. Certain schemes, such as the Conditional Exemption Tax Incentive, may offer significant tax benefits if assets are of national importance and made accessible to the public. However, HMRC will closely scrutinise valuations, so a balanced and realistic approach is required.
Q: What steps can be taken if there is disagreement with a valuation?
A: If there are concerns regarding the accuracy of a valuation, it is advisable to seek a second opinion from another qualified expert. In contentious matters, courts may consider evidence from multiple valuers and will assess the credibility and methodology of each.
Q: What are the best practices for ensuring a reliable valuation?
A: Regularly update valuations, particularly following significant market changes or life events. Select your expert carefully, provide all relevant information, and always insist on a formal, written report. A well-prepared valuation is a key safeguard in dealings with tax authorities, courts, or other stakeholders.
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