Tax & Accounting News
Crackdown on IHT under-valuations
20/06/2011
Those who under-value properties to reduce inheritance tax (IHT) liabilities are being target by HM Revenue and Customs (HMRC) in an ongoing crackdown.
HMRC has started 9,368 investigations into IHT valuations in the past 12 months, raising £70 million from additional tax payments.
If an IHT property valuation is found to be incorrect and reasonable steps were not taken to ensure an accurate valuation, the estate could be fined up to 100 per cent of the additional tax liability, on top of the extra tax due.
Families administering estates should follow HMRC guidelines closely and obtain several property valuations from professional valuers or chartered surveyors to ensure they are not left facing a substantial tax bill.
HMRC says the ongoing clampdown is a routine check, rather than an investigation and that in most cases this simply confirms the valuation offered, rather than catching anyone out.
