HMRC 'targets wrongly-valued estates'
The need for estates to be properly valued when making a claim on a will has been emphasised, after HM Revenue and Customs (HMRC) reportedly carried out 9,368 investigations last year.
According to chartered accountants UHY Hacker Young, inheritance tax valuations that were made incorrectly led to £70 million in additional tax being raised in 2010. Per case, this averages at £24,600.
Mark Giddens, tax partner at the group's London office, explained: "If a property is undervalued by £20,000, this could result in an additional £8,000 tax, plus, say, a 30 per cent penalty of the additional tax, making a total of £10,400."
He also emphasised that people should not believe that these issues only affect millionaires.
The Institute of Professional Willwriters recently explained the importance of writing a will
, saying that it will help ensure an estate is distributed exactly how a person wants.
Published on: June 8, 2011
Did you like this article? Share it!