Recent research has revealed that the UK has thousands of eligible people for an inheritance tax rebate. The amount is around 90 million, which was overpaid in the past.
Many executors are unaware that they may be eligible for a rebate and the money is currently sitting in government coffers. NFU Mutual released figures that indicate that an average of 4,260 estates will be refunded. You can check the inheritance tax cost in UK online for your requirement.
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The value of an estate at the time of tax due is used to calculate inheritance tax. Within 6 months of the death of the deceased, inheritance tax must be paid. If the property is sold for less than its value within four years of the valuation, you can claim back inheritance tax on any difference in estate values. Many people find themselves in this situation due to the dramatic drop in house prices in the past 4 years. However, many don't realize this fact.
The Land Registry gives an 11% figure on the decline in house prices. This category includes thousands of properties. This applies to residential and commercial properties as well as stocks and shares. You can claim a tax rebate if the value of the shares at the time you pay inheritance tax exceeds the sale price.
How to Apply for a Rebate
- People who inherited between June 2008 and February 2009, and June 2010 and August 2011, are the most wealthy and most likely to be eligible for a rebate. This is because house prices fell the most during these times.
- If you believe you might be eligible for a rebate, contact HM Revenue and Customs. You will receive guidance from them about the information that you should provide to support your claim and how likely you are to be eligible.