Inheritance Tax paid but request from Valuation Agency Office

[BlakSheep]

Is it usual practice following submission of IHT and payment in full, the valuation agency would request and want to schedule an inspection of property. Thank you.

[PallasAthena]

Not usual but it is part of the IHT "system". HMRC carry out checks on the property value you put on your IHT form for Probate to see if they consdier it reasonable. They don't disclose exactly what those checks are or how much leeway they give but if they think the value you put appears to be out of line with what they would have expected from other sources they can ask the VOA to visit the property and review the value.

Scroll down to "When HMRC may carry out further checks" on here

How to value an estate for Inheritance Tax and report its value: If Inheritance Tax is due or full details are needed - GOV.UK

[BlakSheep]

Thank you PallasAthena

The solicitor arranged date of death valuations and got three agents to provide a valuation. None of the beneficiaries were permitted to be party to what instructions were given to the agents.

[PallasAthena]

I guess all you can do is welcome VOA in and let them do whatever they want to do and see if you can get them to tell you what the issue is. Refusing the VOA request is not an option or HMRC will just pluck their own number out of the air and send you a supplementary IHT bill.

IIRC HMRC say somewhere that they recommend three valuations then use the average or middle one. HMRC have a preference for the valuations to come from an independent RICS valuer rather than estate agents but it isn't a requirement. HMRC probably don't think estate agents are trustworthy enough to give an unbiased valuation!

[BlakSheep]

Obviously will cooperate - I hadn’t realised that the estate agent valuations would be an issue. Only viewed their final valuation report and the values were a spread but roughly in the same ballpark.