Posted by Tax Innovations on 29 May 2012
Inheritance Tax Overpayments
Thousands of estates may have paid more Inheritance Tax (IHT) than they should have on residential property.
Inheritance Tax, which is based on the market value of the deceased’s property at the time of death, can be reclaimed if the property sells for less than this value within four years.
Research has found that the last four years have seen property prices drop. Financial services provider NFU Mutual have calculated that due to this up to £90 million in tax could be reclaimable.
Experts say: “Many people don’t realise that they can claim back Inheritance Tax if the property they inherit sells for less than it was valued at during probate. And with house prices generally falling over the last four years, thousands of people could still be able to claim back any such overpayment.”
The estimated calculations used to draw this conclusion were made by using a combination of Inheritance Tax breakdowns from HM Revenue & Customs and monthly house price data from the Land Registry.
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