Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, if he will make an assessment of the prevalence of undervaluing properties for sale; and what steps he is taking to tackle tax avoidance arising from practice.

The market value of a property can be relevant to tax liability. HM Revenue and Customs (HMRC) will target such cases for enquiry to ensure that tax is not understated. HMRC works with expert valuers in the Valuation Office Agency where valuation is disputed.

In most cases, undervaluation of a property will be a mistake by the taxpayer or, in some cases, evasion. HMRC already has the powers needed to tackle such misdeclarations. At the July Budget, this Government announced additional investment in HMRC to tackle non-compliance.