HMRC is ramping up its scrutiny of property valuations as half of a clampdown on inheritance tax avoidance, based on a number one legislation follow.
The quantity of circumstances referred to the Valuation Office Agency (VOA) has risen 23.5% within the final yr, based on analysis by TWM Solicitors.
It discovered that referrals to the VOA have been up from 11,845 to 14,631, within the 12 months to 30 September 2025.
HMRC is clearly specializing in property valuations as a major potential supply of income.”
Laura Walkley, Head of Private Client at TWM (pictured), says: “HMRC is clearly specializing in property valuations as a major potential supply of income. There has been a noticeable shift in the direction of questioning figures submitted in IHT returns, slightly than accepting them at face worth.
“If an executor fails to report a property value properly, there can be financial consequences for the estate such as additional tax and interest to pay – potentially by the executor personally.”
Scrutiny
TWM says that HMRC is more and more bringing within the VOA to assist with its scrutiny of inheritance tax returns reflecting its elevated efforts to get well income from under-reported and misvalued estates.
Previously, attorneys would have been contacted by the VOA a few probate valuation “once or twice every few years”, and TWM notes it’s now taking place extra steadily.
Rising home and asset costs and frozen tax thresholds have resulted in additional individuals having to pay IHT, TWM says.
HMRC’s use of AI, knowledge matching and different superior large knowledge instruments, can also be growing its means to determine inconsistencies and errors in IHT returns.
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