VOA to Merge with HMRC – What It Means for Capital Allowances
On 28 April 2025, the UK Government announced that the Valuation Office Agency (VOA) will be absorbed into HM Revenue & Customs (HMRC) by April 2026. This move is part of a broader effort to cut inefficiencies and modernise public services.
The VOA, historically responsible for property valuations for business rates and council tax, also plays a key role in supporting property-based tax claims, including capital allowances and land remediation relief.
What This Means for Capital Allowances (According to HMRC)
- Single Point of Contact: Merging valuation and tax expertise within HMRC may simplify interactions for businesses claiming allowances.
- Faster, More Aligned Assessments: Centralised administration could reduce back-and-forth between HMRC and VOA, potentially speeding up claim reviews.
- Risk of Transitional Delays: As responsibilities shift, there may be short-term uncertainty or delays while systems and personnel integrate.
- Opportunities for Streamlined Digital Processes: The government has stated this change aims to improve digital services, which may benefit future claim submissions and correspondence.
Lovell Consulting View
Potentially yes, in the long term. While immediate benefits may be limited during the transition, this reform could lead to a more consistent and responsive process for tax relief claims involving valuations. It reinforces the importance of having expert support—like ours—to navigate any changes and ensure maximum claims are secured efficiently.
In practice little is likely to change apart from cost savings where admin is duplicated. The VOA staff have specialist skills and will likely be absorbed into HMRC.
