Are you due an Inheritance Tax Refund
The “double dip” recession that the UK economy has encountered over the last 4 years means among other things, that property prices have generally been stagnant or fallen from pre-2008 levels.
In this regard, it is quite possible that Inheritance tax has been paid out in probate cases which may be recoverable if a property has since fallen in value.
In simple terms, inheritance tax (iht) is payable on the value of a property at the date of death.
If a person died in September 2008 and their property was valued at say, £400,000 for probate purposes, any inheritance tax payable on that estate would be based on the probate value of the property.
If the property in question eventually sold for a price of £360,000.00 in 2010, it would be possible to claim the difference by way of an IHT rebate.
In the example above, the loss on the probate value is £40,000.00 and depending on the overall value of the estate, up to £16,000.00 inheritance can be rebated. (40% IHT x £40,000.00)
The claim for a rebate can be made whenever a probate property is sold on the open market at a price lower than the probate value, up to 4 years after the date of death.
At Solomons Solicitors, we are able to offer specilist IHT advice on this and many other areas of inheritance tax which can potentially save thousands, if not tens of thousands of pounds through good planning of your afffairs.