The potential for reducing Inheritance Tax (IHT) bills by placing ‘soft’ valuations on assets is all too clear and has led HM Revenue and Customs to undertaking almost 10,000 investigations into IHT returns in 2010. This represents an ‘investigation rate’ of approximately 1 per 50 deaths. However, since more than 95 per cent of estates are not subject to IHT (either because they are within the nil rate band or the estate passes to a spouse or civil partner), the likelihood of a valuation being challenged where IHT is, or could be, at stake is considerable.
It is important to ensure that valuations of assets on death are carried out properly and professionally and can be substantiated. If your estate is likely to be subject to IHT, we can assist you to ensure that to the fullest extent, it ends up in the hands of your family, not the Exchequer.
From Hacker Young – reported in Accountancy Age, 7 June 2011. Statistics from HMRC and the Office for National Statistics.