HMRC’s intensified scrutiny of property valuations is reshaping estate planning across the UK. Referrals to the Valuation Office Agency (VOA) have surged by 23.5% in just one year, jumping from 11,845 to 14,631 cases. This increase corresponds with a record rise in inheritance tax receipts, which reached £8.5 billion for the 2025/26 financial year—a £200 million increase from the previous year.
Laura Walkley, a tax expert, notes, “HMRC is clearly focusing on property valuations as a significant potential source of revenue.” The agency is employing artificial intelligence and data matching technology to identify discrepancies in reported values. This means that executors who fail to report property values accurately could face serious financial consequences.
The stakes are high—if an executor misrepresents a property’s value, they may incur additional tax and interest payments personally. Walkley warns, “If an executor fails to report a property value properly, there can be financial consequences for the estate such as additional tax and interest to pay potentially by the executor personally.”
The current nil-rate band for inheritance tax has remained fixed at £325,000 since 2009 and will stay frozen until at least April 2031. The 40% inheritance tax rate kicks in after estates exceed this threshold. As Walkley points out, “There has been a noticeable shift towards questioning figures submitted in IHT returns, rather than accepting them at face value.”
In March alone, inheritance tax receipts generated a staggering £755 million—indicative of the growing scrutiny around property valuations. HMRC spokespersons have stated that while most people pay the correct amount of inheritance tax, investigations will be opened if discrepancies are suspected.
The increased scrutiny comes during a period of market uncertainty that complicates accurate property valuations. With rising costs and fluctuating market conditions, individuals are encouraged to ensure their estate planning is thorough and precise.
As HMRC continues to adapt its methods using advanced technology, it remains unclear how these changes will impact ordinary families navigating estate planning in the future. Officials have not confirmed any specific timeline for further updates on this initiative.
