Falling house prices result in IHT rebates

Thousands of people may be entitled to an inheritance tax rebate as a result of falling house prices. Inheritance tax (IHT) is calculated using the value of the property at the time of death, however, a rebate can be claimed if the property sells for a lower price within 4 years.

NFU Mutual believes that as much as £90million could be paid out in inheritance tax rebates as a result of house prices in Northern Ireland and the rest of the UK falling on average 11% over the last four years. The size of the rebate could be even larger in respect of Northern Ireland estates as house prices have plummeted more severely over the last four years compared to most other regions of the UK.

Lenore Rice, a partner specialising in estates and will writing at Wilson Nesbitt, commented:

"There are other stipulations to watch out for other than the time barr for sale. The persons making the claim have to be 'appropriate persons', the sale cannot be to a beneficiary and there is a time frame in which to make any claim."

If you require legal advice in respect of an estate, including all inheritance tax matters, contact one of the dedicated estates administration solicitors at Wilson Nesbitt by calling 0800 840 9293. Or to read more information on tax planning, including a guide to inheritance tax exemptions and reliefs, click here.

 

 

(Image rights reserved by Images_of_Money)