HMRC Tightens Scrutiny on Inheritance Tax Property Valuations

HM Revenue & Customs (HMRC) is increasing its scrutiny of property valuations submitted in inheritance tax (IHT) returns, with more cases now being referred to the Valuation Office Agency (VOA).

This marks a shift from previous practice, where valuations were less frequently challenged. HMRC is now taking a more proactive approach, particularly as inheritance tax receipts continue to rise and more estates fall within the IHT threshold due to frozen allowances.

What This Means for Executors

Executors and families should be aware that:

• Property valuations are more likely to be reviewed
• Undervaluation may lead to additional tax, interest, and penalties
• Executors could face personal liability in some cases

Reducing Risk

To minimise the risk of disputes with HMRC, it is advisable to:

• Obtain a professional valuation from a qualified surveyor (e.g. RICS)
• Keep clear records supporting the valuation
• Seek legal advice early in the probate process

How We Can Help

Our private client team can assist with inheritance tax planning and estate administration, ensuring valuations are robust and compliant with HMRC expectations.

Contact us to book your appointment today! 01926 422101 or leamspa@fieldoverell.com