Call us today

HMRC investigates estate valuations as part of IHT campaign

Get in touch today - call Kent on 01634 570 390 or Surrey on 01737 370 493

Book a FREE consultation

If you would like to get some impartial advice, simply book a free consultation and we'll get in touch with you as soon as we can.

HMRC investigates estate valuations as part of IHT campaign

The number of investigations conducted against estates thought to be avoiding Inheritance Tax (IHT) has increased, according to new data from HM Revenue & Customs (HMRC).

The tax authority has revealed that 5,400 estates were investigated during the 2017/18 tax year – a five per cent increase on the previous year’s figure (5,100 estates).

This means that nearly a quarter (24 per cent) of all estates liable for IHT were investigated by HMRC for avoidance during the last tax year.

Experts have said that the rapid rise in property prices is a key factor to these investigations, as HMRC believes that additional value should be attributed to properties that have the potential for refurbishment, or that have land attached that could be developed.

If an estate is investigated by HMRC, beneficiaries may have to pay up to 100 per cent of the tax charged on the estate if the tax authority can prove avoidance has taken place.

Data shows that HMRC is increasingly challenging the value of estates as it has become a lucrative approach for uncovering unpaid liabilities.

An HMRC spokesperson said that their investigations into IHT ensured that everyone paid the right amount of tax.

Link: HMRC annual report and accounts: 2017 to 2018

Top

Urgent COVID-19 Notice
Working From Home

Our first priority is the health and well-being of our team and our community. Therefore, with a heavy heart we have made the decision to temporarily work from home with immediate effect.

We are listening to the government’s daily updates, taking each day as it comes, and will reopen our offices as soon as it is safe to do so.

If you have any questions or need to discuss any issues at all please do email or call us on our usual number 01634 570 390.

The general email is enquiries@orchardaccountants.co.uk.

We hope everyone is keeping well and staying safe.

This website uses cookies to enhance your browsing experience... moregot it