Inprecise valuations can leave beneficiaries of a deceased’s estate vulnerable to challenge says Marcus Andrews FRICS of Goadsby. Last year HMRC launched over 9,000 investigations into Inheritance Tax (IHT) valuations and raised over £70 million in extra revenue. If they find an incorrect property valuation produced without ‘reasonable care’, the estate could end up having to pay a maximum fine of up to 100% of the additional tax liability, as well as the tax owed.
The HMRC state on their website:
‘HM Revenue & Customs (HMRC) strongly recommend that you use a professional valuer because they’ll make sure the valuation is as accurate as possible’.
During an investigation when deciding whether ‘reasonable care’ was taken, the HMRC will ask questions, such as:
· Did you seek professional advice from a qualified Independent Valuer?
· Was the Valuer’s attention drawn to particular features of the property (such as development potential).
“As well as our Residential and Commercial branch network, Goadsby have several Chartered Surveyors who are Registered Valuers” says Marcus Andrews. “We can therefore offer a complete service of a professional valuation together with, if required, the actual disposal of the property”. All of this could minimise the risk of having to pay more tax and the fine.