Inheritance Tax Rebates

A little known rebate claim can be made on Probate Administrations.

If you have paid inheritance tax (IHT) in the past year on inherited share portfolios or properties, and their value has plummeted, meaning that you sold them at a loss, you can apply for a tax rebate.

Under current tax rules, executors can apply for IHT refunds on losses made on the sale of inherited securities within 12 months of the individual’s death. The relief applies to listed shares, Gilt’s (UK Government bonds) and open ended funds – but not unquoted or AiM shares.

You can also claim a rebate on property if you sell it for a lower value than its probate value, within 4 years of the death ‘the difference could be huge’.

In the 2018-19 tax year, more than 4500 estates claimed IHT loss relief, and the numbers may increase this year, as assets prices have now faced a sharp decline, and there is uncertainty about where the current property market values might go, post the Covid 19 and Brexit issues. We think there are going to be some very large sums as steak, and process of making a claim for loss relief should be considered.

We have recently had one case where we were successful in claiming back over £28,000 IHT payable.

However please be advised of the strict rules on the time limits available to you to claim these loss reliefs.

If you require help in connection with any of these matters, please do not hesitate to contact us.