It’s been reported that increasing numbers of grieving middle-England families are being targeted by HM Revenue & Customs by carrying out 9,500 investigations into Inheritance tax valuations in the last 12 months.
The finding reported by UHY Hacker Young reported that HMRC had launched 9,368 investigations into estates and beneficiaries in the year up to December 2010.
Carl Marston head of Wills, Trusts and Estates for leading Chester law firm Hillyer McKeown, commented on the findings saying “Inheritance tax is payable if the assets of an estate total more than the current tax free threshold of £325,000. Due to the value of property thousands of children, families and beneficiaries are pulled into the Inheritance tax bracket every year. Estate beneficiaries are finding themselves facing financial penalties if HMRC investigates an Inheritance Tax Property valuation and finds it to be wrong due to ‘reasonable care’ not being taken at the point of Valuation.”
Carl continued “People should, even in the simplest of estates, seek advice where a date of death valuation is required. HMRC promote formal valuations as a requirement to meet the “reasonable care” standard resulting in needless valuations costing hundreds of pounds. In many cases a formal valuation may not be needed and a best estimate or open market valuation will suffice.”
If you would like more expert advice, please contact
Nicki Spindler
M. 07540 723 832
E. nicki@freerpr.com
