hmrc property valuation scrutiny is tightening fast as referrals to the Valuation Office Agency rose 23. 5% in the 12 months to 30 September 2025. TWM Solicitors says the increase signals a sharper clampdown on inheritance tax avoidance, with HMRC questioning more property values in IHT returns. The shift is putting executors and estates under greater pressure as HMRC seeks more revenue from under-reported and misvalued assets.
Referrals climb as HMRC focuses on estate values
The number of cases sent to the Valuation Office Agency increased from 11, 845 to 14, 631 over the year, based on research by TWM Solicitors. The firm says the pattern marks a clear change in enforcement, with HMRC treating property valuations as a significant potential source of revenue.
TWM says referrals involving probate valuations, which once came through only “once or twice every few years” for many legal practices, are now happening more often. The increase reflects a stronger effort to recover revenue from estates where property values may have been under-reported or misstated.
hmrc property valuation scrutiny is now more aggressive
Laura Walkley, Head of Private Client at TWM Solicitors, said HMRC is “clearly focusing on property valuations as a significant potential source of revenue” and has shifted toward questioning figures submitted in IHT returns rather than accepting them at face value. She warned that if an executor fails to report a property value properly, the estate can face additional tax and interest, with possible personal liability for the executor.
The firm says rising house and asset prices, combined with frozen tax thresholds, have pushed more people into inheritance tax. It also says HMRC’s use of artificial intelligence, data matching and other advanced big data tools is improving its ability to identify inconsistencies and errors in IHT returns.
Why the pressure is building now
The latest increase comes as more estates fall into the taxable bracket while asset values continue to rise. TWM says HMRC is making greater use of the Valuation Office Agency to scrutinise inheritance tax returns and cross-check property valuations against its own data.
That means property valuations are no longer being treated as a routine formality in many cases. Instead, hmrc property valuation scrutiny is becoming a central part of how the tax authority tests whether estate figures are accurate and complete.
What executors and estates may face next
The immediate direction is clear: more referral activity, more valuation challenges and more pressure on those preparing inheritance tax returns. TWM’s findings suggest HMRC will continue to lean on data tools and the Valuation Office Agency as it expands its checks on property values.
For executors, the stakes are rising alongside the scrutiny. As hmrc property valuation scrutiny intensifies, the margin for error is getting smaller and the financial consequences of a wrong figure can quickly escalate.
