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HMRC investigating property valuations

HM Revenues and Customs is targeting increased numbers of inheritance tax property valuations, according to an accountancy firm.

UHY Hacker Young says HMRC has launched 9,368 investigations into inheritance tax valuations over the last year and is actively targeting estates and beneficiaries.

It says that according to HMRC’s figures, £70m worth of additional tax was raised as a result of HMRC challenging the valuations of properties included in the estate of a deceased person in 2010.

In cases where additional tax was payable, this averaged £24,600 per case.

Inheritance tax is typically payable if the assets of an estate total in excess of £325,000.

If an IHT property valuation is found to be incorrect and HMRC considers that ‘reasonable care’ was not taken in establishing it, the estate and its beneficiaries could be forced to pay a maximum fine of up to 100% of the additional tax liability, as well as the additional tax due.

Mark Giddens, a tax partner at UHY Hacker Young’s London office, says inheritance tax affects most of middle England, where the estate may consist of little more than an average sized property.

He says: “Obtaining further valuation quotes from estate agents or surveyors adds significant additional costs on the estates and ultimately reduces the final value for those who inherit them.

“However, with house prices in London and the South-East starting to return to pre-recession levels, beneficiaries need to be aware that the potential fine resulting from a mis-valuation will rise proportionately.”

Russell Cade, director at Move With Us, adds that the news HMRC is investigating the valuation of properties left by the deceased highlights the importance of obtaining an accurate valuation at the start of the property sales process.

He says: “Using more than one estate agent, as well as online data such as up-to-the-minute sales and market comparisons from multiple sources will give the beneficiaries and executors the information they need to prove the property has been accurately valued.

“Time is of the essence and valuations that are not only accurate, but done in a timely manner will speed up the process and ensure that any tax penalties are not incurred by the estate.”


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  • Alison 8th June 2011 at 7:41 am

    HMRC have no shame, no morals and no sympathy. In fact the perfect representatives of government in this country.

  • Dissavowed 7th June 2011 at 9:46 pm

    If HMRC are fast for something to do, why dont they call in the Serious Fraud office, and investigate the banks for perpetuating the biggest mortgage fraud in history?

    And Ministers, who were voting on policies to inflate, and keep inflated, the biggest housing bubble in history, whilst all the time, making hundreds of thousands in personal profits, under a secret expenses system, with second homes, funded by the taxpayer?

    Or the ratings agencies for rating those properties, which were wrapped in CDO’s as AAA rated?

    Or the FSA for not challenging banks on whether they should be growing so fast in the mortgage market, or loading themselves up with collateralised debt obligations manufactured from toxic subprime loans, or funding themselves to an ever-increasing extent from the sale of mortgage-backed securities?

    Or the liar loan landlords, who earned £10k per year, yet were allowed to borrow enough to buy hundreds of properties?

    Or Gordon Brown, for organising the shotgun wedding between HBOS, and Lloyds? [where according to whistleblowers like Paul Moore, up to 80% of mortagage loans, made at HBOS, were so called liar loans. Yet the banks refuse to release the LTV of those properties.] Or the monopolies commisions for bowing to the crooked Prime Minister.

    Or any of the other multi millionaire’s who encouraged mis-selling risk, who are implicated in this? And walked away with pensions in the tens of millions?


    What of those of us pushed into debt slavery?
    Working year after year, with nothing to show for it? No Capital.
    Paying off the mortgage and retirment, of liar loan landlords?

    Unable to afford a shoebox, as properties were purposefully fraudulently manipulated to rise, by 300%.

    Now our money is being stolen to pay to keep the banks assets, other peoples houses, massively overinflated, ensuring we can never afford our own.

    The Most notable characteristic of a FASCIST ideology, is the seperation or persecution of one section of a society at the expense of another.

    Welcome to Corrupt Fascist Corporatist Britain.

    ‘Property is Theft’ Proudhon.

    We only wanted a house we could afford and a decent job. Instead your evil theft, has turned us into anarchists.

    No-one’s held accountable and the innocent are punished.