HMRC investigations into underpaid IHT raised an extra £271m in 2018/19, a 9% increase over 2017/18, according to private client law firm, Wilsons.
Much of this tax is likely to have been raised from investigations into suspected under-reporting of the value of a residential property. Wilsons notes that it is now easier than ever for HMRC to investigate IHT underpayments on residential property, using facilities to check property valuations automatically against Land Registry databases on sale prices for similar properties.
Rupert Wilkinson, partner at Wilsons says: ‘All property values that look out of kilter with the local market are now likely to be checked by HMRC. Inadvertently undervaluing a property could leave bereaved families facing big fines for unpaid IHT.’
HMRC investigations into underpaid IHT raised an extra £271m in 2018/19, a 9% increase over 2017/18, according to private client law firm, Wilsons.
Much of this tax is likely to have been raised from investigations into suspected under-reporting of the value of a residential property. Wilsons notes that it is now easier than ever for HMRC to investigate IHT underpayments on residential property, using facilities to check property valuations automatically against Land Registry databases on sale prices for similar properties.
Rupert Wilkinson, partner at Wilsons says: ‘All property values that look out of kilter with the local market are now likely to be checked by HMRC. Inadvertently undervaluing a property could leave bereaved families facing big fines for unpaid IHT.’
