Can I get a refund on Inheritance Tax?

When applying for probate, inheritance tax is paid to HMRC based on the value of the asset at the date of death (this is the Probate value). Looking at properties specifically, we have seen in recent years and particularly since covid, that property prices have increased from the Probate value to when the property is sold (Realised value). This has often caused a capital gains tax liability.

However, recently and because of rising mortgage rates, house prices are falling from the probate value to the realised value.

In a taxable estate, if you or your solicitor has obtained a Grant of Probate and the property is later sold for less than the Probate value, the estate will be entitled to claim back the additional inheritance tax.

Overpaid inheritance tax would need to be claimed from HMRC within four years of a death.

Unfortunately, this is often overlooked, and big refunds could be due to an estate. If you are a Personal Representative of an estate, you are under a duty to be acting in the best interests of the estate and beneficiaries. As such, if you think this relief may be relevant to you, it is strongly advisable to seek legal advice.

Our specialist lawyers at Welland Valley Legal  are always happy to help with your enquiries. To find out more about our services, call us on 01858450765