Falling Values Post-Brexit : A Reminder for Personal Representatives

  • August 02, 2016
  • By Hunters Law

Personal Representatives can claim relief from Inheritance Tax if they sell quoted investments and/or land/buildings at less than their value at the date of death.

To obtain a Grant of Probate (or Letters of Administration in an intestacy), Personal Representatives generally have to pay any inheritance tax due first, subject to available reliefs. The value of the assets on which the inheritance tax is calculated is their open market value as at the date of death. If, however, quoted investments or land/buildings are subsequently sold for less than this value, a claim for inheritance tax loss relief might be possible.

For quoted investments, provided these are sold within twelve months of the death, and the requisite claim form is submitted to H M Revenue & Customs within five years from the date of death, the sale price can be substituted for the date of death value. Similarly, if the deceased’s land/buildings are sold within four years of the death, and the appropriate claim form is submitted to H M Revenue & Customs within seven years of the death, the sale price can again be substituted for the date of death value, subject to certain restrictions. In each case, the sale must have been made by the persons liable for the inheritance tax. A transfer of the assets to a beneficiary before they are sold, for example, would mean a claim for relief would then be unsuccessful.

A successful claim for loss relief will result in a reimbursement from H M Revenue & Customs for the inheritance tax overpaid, as if the inheritance tax had been calculated using the sale price and not the date of death value. This relief will no doubt continue to become more important if values fall.

For more information, please contact the partner having responsibility for your affairs, or any partner in the Private Client Department here.

Related News

Jan 25, 2022
Flora Nelmes discusses the steps involved in insuring an unoccupied property following a death in Lawyer Monthly
Jan 17, 2022
Probate Application Fee Increase
Dec 13, 2021
Flora Nelmes says that clients should review their existing wills and consider IHT opportunities with the RNRB to remain fixed until April 2026 in Accountancy Daily
Dec 01, 2021
Flora Nelmes discusses the opportunities to review existing wills and explore IHT, as the residence nil rate band is to remain frozen until April 2026, in Lawyer Monthly
Oct 28, 2021
Doubling of time limit for payment of CGT on residential property transactions
Sep 30, 2021
Hunters recognised in Spear’s 2021 Tax & Trust Advisors Index
Sep 30, 2021
Sunir Watts explains how to make use of inheritance tax gift exemptions in Taxation
Sep 21, 2021
Harriet Murray examines whether a wealth tax is the way to pay for the pandemic in Accountancy Daily
Sep 20, 2021
Louise Garrett discusses the proposed increase in probate fees in WealthBriefing
Sep 17, 2021
Molly Wills discusses Lasting Power of Attorneys in Hamilton George Care

© Hunters Law LLP 2022 | Privacy NoticeLegal & Regulatory | Cookies Policy | Complaints Procedure.

Hunters Law LLP is authorised and regulated by the Solicitors Regulation Authority (number 657218)