Up to £90 million of inheritance tax (IHT) paid in the last four years may be reclaimable due to the fall in house prices. According to NFU Mutual, the dip in the housing market means thousands of Britons may have paid more than they need to.
IHT is calculated based on the value of the deceased’s property at probate, and is often paid promptly after a quick home sale. However, HM Revenue and Customs rules allow for the amount to be recalculated if the property sells for less than the valuation within four years. The average UK house price has dropped 11 per cent since 2008.
Sean McCann, personal finance specialist at NFU Mutual, says many people are unaware that claims can be made in such circumstances. “And with house prices generally falling across over the last four years, thousands of people could still be able to claim back any such overpayment,” he added.