Time for an inheritance tax refund? Act quickly!

With the stock market taking a plunge, Executors will need to keep a close eye on share portfolios in estates. Where the value of shares fall after death, it may be possible to reclaim inheritance tax paid but only if the loss is incurred within a year of death.

In many cases the power to dispose of shareholding’s will depend on whether probate has been granted, and with likely delays to this process resulting from COVID-19, that one year time frame will quickly disappear.

During that time Executors must meet their obligations to consult with beneficiaries. They also need to ensure that the losses meet the strict and numerous qualifications for an IHT refund such as whether it’s the executor or a beneficiary who incurs the loss, who makes the claim to HMRC, and what happens if there are any gains. There are many pitfalls for the unwary and Executors may be negligent if they make a mistake or don’t take proper advice.

Our legal and tax advisers collaborate with our Financial Planning team to offer a network of expertise to support Executors and develop strategies to help with these tricky issues.

Our team are on hand to provide advice on this area. For further information, please speak with your usual Kreston Reeves contact here.