Inheritance tax relief on inherited shares

[Clitheroekid]

Just a note to remind any executors or beneficiaries of an estate that if the value of any shares in the estate has dropped since the date of inheritance (which nearly all will) it may be possible to claim a refund of any inheritance tax attributable to the value of those shares.

For example, if shares worth £1 million at the date of death were inherited, the tax owed (ignoring reliefs etc) would be £270k. But if the shares halved in value to £500k during the recent collapse in prices then if the shares are sold at that price within a year of the death a rebate of £200k can be applied for.

Needless to say, HMRC do not issue reminders, and the onus is entirely on the executors to make the relief application.

Unfortunately, many non-professional executors will not be aware of this relief, and will not, therefore, apply for it. They could consequently incur very substantial personal liability to the beneficiaries without even knowing.

More information here - https://www.gov.uk/government/publicati ... ares-iht35