HMRC targets inheritance tax valuations
HMRC has launched 9,368 investigations into the under-valuation of properties included in inheritance tax (IHT) calculations and is actively targeting estates and beneficiaries, according to UHY Hacker Young.
In the year to December 2010 it raised around £70m of additional tax as the result of challenging properties valuations included in the estates of deceased people.
Inheritance tax is typically payable if the assets of an estate total in excess of £325,000. Data from the Land Registry in England and Wales shows that the average house price in the South East is £274,000 rising to £410,000 in Greater London.
According to UHY Hacker Young, the tax take is set to increase as house prices creep back up to pre-recession levels in some areas