Families in the UK have made nearly 32,000 reclaims for overpaid inheritance tax in the past six years, figures obtained by financial advisers NFU Mutual reveal
The reclaims figure was obtained in a freedom of information request to HMRC.
Inheritance tax (IHT) is assessed on the value of a person’s estate on the date of death and the tax must normally be paid within six months. If property or shares are sold at a lower value following the death, tax can be reclaimed.
If, when the executors come to sell any property or shares, the price has fallen, they can reclaim the overpaid tax from HMRC. The tax refund is not automatic and has to be pro-actively reclaimed.
It is available if the executors sell property within four years of the death, or if they sell shares or other qualifying investments within 12 months of the death.
