Coin Collection Probate Valuation: UK Collector's Guide

Quick answer

For UK probate, a coin collection must be valued at open-market value on the date of death, itemised with photographs and grade, and submitted to HMRC on form IHT400 (or IHT205 for excepted estates). Collections over £1,500 in aggregate typically need a professional written valuation from a BNTA member or a major auction house (Spink, Baldwin's, Noonans). MyCoinage produces the inventory; the valuation signature comes from a registered valuer.

TL;DR

• Probate valuation uses open-market value, not retail replacement, typically 20-30% below insurance value
• HMRC requires itemised schedules for collections over £1,500 aggregate
• Pre-existing MyCoinage records cut valuation time (and cost) dramatically
• Executors have 12 months from death to pay any IHT owed
• Coins are chattels for CGT purposes when sold by beneficiaries, £6,000 exempt threshold applies per item

Table of contents

• What probate valuation means
• The HMRC forms and thresholds
• Getting a professional valuation
• Valuing the collection yourself first
• Inheritance tax on coins
• Selling the collection after probate
• Capital gains for beneficiaries
• Common questions
• FAQ

What probate valuation means

Probate valuation establishes the monetary value of an estate as at the date of death, for the purpose of:

1. Calculating inheritance tax (IHT)
2. Obtaining the grant of probate
3. Distributing the estate to beneficiaries

For coins specifically, HMRC asks for "the open-market value", what a willing buyer would pay a willing seller on the open market at arm's length. This is not the retail price at a dealer (too high) and not the immediate buyback price (too low). It's the realised auction price range for items at that grade, on that date.

Why it differs from insurance valuation

Using insurance value for probate overstates the estate, potentially triggering IHT that wouldn't otherwise be due. Using dealer buyback understates it and risks HMRC challenge.

The HMRC forms and thresholds

Two forms apply:

IHT205 (excepted estates). For estates under the nil-rate band (£325,000 in 2026) or simple estates below certain thresholds. Coins listed in aggregate with estimated value.

IHT400 (full return). For estates above nil-rate band or with complex assets. Coins listed on schedule IHT407 ("Household and personal goods") or IHT411 ("Listed stocks and shares and other valuables") depending on value and type.

Thresholds that matter

• Single item over £1,500: itemised with professional valuation
• Aggregate coins over £1,500: itemised schedule, professional valuation
• Single item over £500: photograph and valuation recommended
• Nil-rate band 2026: £325,000 (single), £650,000 (married/civil partnership with full transfer)
• Residence nil-rate band: additional £175,000 where main residence passes to direct descendants

Timing

Executors should obtain the valuation within 3-6 months of death. IHT is due within 6 months (or 12 months for some categories), and interest accrues thereafter. A pre-existing catalogue cuts this window dramatically.

Getting a professional valuation

For any coin collection worth more than £1,500 in aggregate, HMRC expects a written valuation from a qualified valuer.

Acceptable valuers

• Members of the British Numismatic Trade Association (BNTA)
• RICS Chartered Valuers with numismatic specialism
• Named specialists at Spink, Baldwin's, Noonans, Dix Noonan Webb, Lockdales
• Auction house valuation departments

Typical costs (2026)

Spink and Baldwin's often conduct probate valuations free or at reduced cost if the collection is subsequently consigned to them for auction. This is worth negotiating, but executors should get a second quote regardless.

What the valuation contains

• Itemised list with photographs
• Grade assessment for each significant piece
• Open-market value for each
• Aggregate total
• Valuer's credentials and signature
• Date of valuation (must be close to date of death)

The pre-existing MyCoinage advantage

If the deceased maintained a MyCoinage catalogue, the valuer's job shrinks from "identify and grade everything from scratch" to "verify and sign the existing inventory." Typical cost savings: 40-60%. Time savings: often weeks.

Valuing the collection yourself first

Executors can produce a preliminary valuation before calling the professional valuer. This speeds the professional's job and helps scope the engagement.

Process

1. Photograph the collection in situ before moving anything
2. Catalogue each piece with denomination, year, and visible mintmark
3. Grade conservatively using how to grade a coin
4. Research realised auction prices for each major piece
5. Produce a preliminary total

The preliminary total is not HMRC-acceptable on its own for collections over £1,500, but it tells the executor whether a cheap or expensive professional engagement is needed.

Useful references

• Spink auction archive
• Numista community values (cross-check only)
• MyCoinage's realised-price aggregates
• Are old coins worth anything
• Rare UK coins list

Inheritance tax on coins

Coins are chattels under UK tax law and included in the estate at open-market value. Key points:

• No special IHT exemption for coins (unlike business property or agricultural property)
• Gold investment coins (sovereigns, Britannias) are treated the same as numismatic coins for IHT
• Collections passing to a spouse or civil partner are exempt from IHT
• Collections passing to charity qualify for the charity exemption
• Business relief does not apply to personal collections (dealers' stock is different)

The cumulative problem

IHT is calculated on the total estate, not per-asset. A £50,000 coin collection added to a £400,000 house, £100,000 savings and £50,000 pension residue puts an estate at £600,000, £275,000 above nil-rate band, £110,000 of IHT at 40%.

Mitigations (limited)

• Gift the collection during lifetime (7-year potentially exempt transfer rule)
• Leave to spouse (spousal exemption)
• Leave to charity (charity exemption + 36% reduced rate on estate)

These are complex; consult a solicitor before acting.

Selling the collection after probate

Executors may need to sell the collection to realise its value, whether for distribution or to pay IHT. Options:

Auction is the highest-return route for numismatic material. Dealer sale is fastest. Bullion routes through scrap dealers are only sensible for worn or melt-grade coins.

VAT and auction fees

• Buyer's premium: 20-28% + VAT on premium (seller doesn't pay)
• Seller's commission: typically 10-15% + VAT for standard consignments
• Insurance in transit: usually 0.5-1%

Net to estate: typically 85% of hammer price after all fees.

Capital gains for beneficiaries

When a beneficiary inherits coins, their cost basis is the probate valuation. If they later sell, CGT is calculated on the gain between probate value and sale price.

Chattels exemption

UK CGT has a chattels exemption: gains on chattels worth £6,000 or less per item are exempt. Most individual coins fall under this. The exemption applies per item, not per collection.

The "sets" problem

HMRC treats sets of coins (e.g. a proof year set) as a single item if sold together, meaning the £6,000 exemption applies once to the set. Selling pieces individually preserves the per-item exemption. Consult on a case-by-case basis.

Record-keeping for beneficiaries

Beneficiaries inheriting a coin collection should preserve:

• The probate valuation (cost basis)
• Photographs of each significant piece
• Provenance documentation

A MyCoinage catalogue imported from the deceased's account (by permission) streamlines this dramatically.

Common questions

Can I use the deceased's MyCoinage records as the probate valuation?

As the inventory, yes. As the signed valuation, no, HMRC wants a signed document from a qualified valuer. The records provide the evidence base; the valuer's signature converts it to an acceptable valuation.

What if the collection is worth less than the nil-rate band?

Still needs valuing if the total estate is above nil-rate band, or if any single item exceeds £1,500. For small estates well below the threshold, aggregate estimation may suffice.

Do I need to tell HMRC about gold sovereigns specifically?

Yes. Sovereigns are treated as chattels for IHT purposes. They must be included in the estate valuation at open-market value on date of death.

How quickly must the collection be valued?

Within 6-12 months typically. Earlier is better, IHT interest accrues from 6 months after end of month of death.

FAQ

Q: Is there a probate fast-track for coin collections?
A: No, probate is probate. But major auction houses often prioritise probate consignments given the time pressure.

Q: What if the deceased had no inventory?
A: The valuer starts from scratch. Expect higher costs and longer timeline. This is the best argument for maintaining a live catalogue while alive.

Q: Can I sell coins immediately after death to pay IHT?
A: Executors can, using the executor's loan or personal representatives' liability. Pre-probate sales are possible but require careful accounting.

Q: Who owns the coins between death and probate?
A: Technically they vest in the personal representatives from date of grant. Insurance must continue uninterrupted.

Q: What about coins stored in a bank deposit box?
A: Deposit box is accessed via probate. Box contents need valuing like any other estate asset. Bank access requires the grant of probate itself (catch-22, keep inventory outside the box).