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Types of Jewellery Valuations in the UK

Specifically for the Gem and Jewellery Disciplines

Please remember that some laws relating to appraisal and valuation terminology can vary with geographic area and jurisdiction (English versus Scottish law). The nomenclature used here is that which most commonly occurs or minor detail that varies greatly between jurisdictions has been omitted.

The types of jewellery valuations and their definitions are not intended to be legally exhaustive. The information noted here is intended to offer guidance to consumers to assist them to better understand the purpose and function of each valuation type and to bring some clarity, when needed, to terminology used by a jewellery valuer.

These valuation categories and definitions were witten and compiled by Adrian S Smith FGA, FJVA of Surety Valuations in Perth, Scotland.

To view valuation types used in other countries, please go to the Worldwide Jewellery Appraisal Definitions page.

Jewellery valuer UK

Capital Gains

Jewellery Valuation for Capital Gains

Jewellery Valuation to Assess Capital Gain

Very Rarely Requested

This appraisal would be submitted to HMRC to prove a gain (or otherwise) in capital worth over a set period so that Capital Gains Tax liabilities can be calculated. The figure presented in the report represents the difference in Open Market values of an item between two specific dates. This figure does not include VAT.


Jewellery appraisal for Divorce Settlement

Valuation for Divorce Settlement

Rarely Requested

Used to establish the value of a married couple's jewellery, diamonds, gemstones and watches. The cited values represent the Open Market Value of the items as of the Date of Separation. This figure is appropriate to be put to the Court when jointly owned property is in dispute or the cash value is to be divded between to the two parties. The values do not include VAT.


Jewellery Valuation for Insurance Replacement

Valuation for Insurance Replacement

Routinely Requested

Used to present to an insurance company prior to taking out or renewing an insurance policy. This enables them to establish their maximum financial exposure in the event of a loss. The value represents the modal retail replacement cost of an item of equal merit from the most appropriate type of source within a given broad geographic area. Whether the item is valued on a New Replacement Value (NRV) or Secondhand Replacement Value (SHRV) basis is largely dictated by the type and age of the item, although it is possible for the policy-holder and/or the insurance company to have some sway here too. All values normally include VAT.

Division of Assets

Jewellery Valuation for Division of Assets

Jewellery Valuation for Division of Assets or Equitable Distribution

Sometimes Requested

This appraisal and valuation is used to establish the value of one or more items of jewellery to be used in an equitable distribution scenario. The basis of value is largely dictated by the function of the valuation. An example could be the division of property in a scenario where you require an informal valuation so that a collection of valuables can be distributed among two or more recipients following the death of the owner of the gems. The ascribed values are usually based on Fair Open Market values, but there are other possibilities. In the UK there is an increasing likelihood that this information could be delivered verbally during an informal consultation, rather than a formal report being produced.

Post-Loss Insurance Assessment

Jewellery Post-Loss Assessment

Post-Loss Assessment

Commonly Requested

This type of document is prepared after an insured loss has occurred. If you have suffered a partial loss then the type and extent of damage is documented along with an opinion of the value of the item before the damage occurred as well as an opinion of the value after the damage occurred. From those two values, the insurer will determine the diminution of value in order to settle the claim. If you have suffered a total loss then an opinion of the value of the item immediately prior to loss is provided. The specific type of value provided in the report is often determined by the insurance company. In both situations the valuation is based on the use of extraordinary assumptions and hypothetical conditions. These assessments rely on information provided by 3rd parties such as photos, receipts, previous valuations or laboratory reports.


Jewellery appraisal for Probate

Valuation for Probate or Confirmation of Will

Commonly Requested

Used to establish the value of a Deceased's estate to enable the calculation of Inheritance Tax due to HMRC and settling of probate. The cited values represent the Open Market value of the item(s) as of the Date of Death without deduction of any selling costs, e.g. An Auctioneer’s commission. The values do not include VAT.

Sale Between Parties

Jewellery Valuation for Sale Between Parties

Valuation for Sale Between Parties or Sale by Private Treaty

Rarely Requested

Used to assist two private individuals where one is the owner and the seller, and the other is a prospective buyer. The value represents the mid-point between the Open Market Value and the Retail Replacement cost from the secondary market exclusive of VAT. This valuation can also be based on the expected sale price of the item at a public auction, exclusive of any Buyer's Premium or Seller's Commission and costs. The Valuer’s intention here will be to find the fairest figure from which both parties can negotiate according to their circumstances.

Agreed Value

Agreed Value Basis

Valuation for Insuring on an Agreed Value Basis

Very Rarely Requested

Strictly, this is more a type of insurance policy than a valuation type. An insurance company may consider covering an article on this basis, if the item is extremely rare, "irreplaceable" or of such a value as could be considered as an exceptional case. The policy-holder enters into an arrangement with their insurer on the understanding that in the event of total loss, the item will be replaced with another item to a value previously agreed between the two parties. The Appraiser's part in this scenario is to provide a full appraisal of the ‘irreplaceable’ item and provide some context regarding value. It is not to set the actual figure of the Agreed Value, that is between the Insurer and the Policyholder.