HMRC is ramping up its scrutiny of property valuations as part of a clampdown on inheritance tax avoidance, according to a leading law practice.
The number of cases referred to the Valuation Office Agency (VOA) has risen 23.5% in the last year, according to research by TWM Solicitors.
It found that referrals to the VOA were up from 11,845 to 14,631, in the 12 months to 30 September 2025.
HMRC is clearly focusing on property valuations as a significant potential source of revenue.”
Laura Walkley, Head of Private Client at TWM (pictured), says: “HMRC is clearly focusing on property valuations as a significant potential source of revenue. There has been a noticeable shift towards questioning figures submitted in IHT returns, rather than accepting them at face value.
“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 increasingly bringing in the VOA to help with its scrutiny of inheritance tax returns reflecting its increased efforts to recover revenue from under-reported and misvalued estates.
Previously, lawyers would have been contacted by the VOA about a probate valuation “once or twice every few years”, and TWM notes it is now happening more frequently.
Rising house and asset prices and frozen tax thresholds have resulted in more people having to pay IHT, TWM says.
HMRC’s use of AI, data matching and other advanced big data tools, is also increasing its ability to identify inconsistencies and errors in IHT returns.
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