is it possible to claim back Inheritance tax

weechief1

me and my family inherited a large some of money which was to be divided equally between us. however the inheritance was tax a ridiculous sum- so is it possible to reclaim any of it back through any means?

mightymouse

Hi

You need to consider a 'deed of family arrangement'.

http://www.hmrc.gov.uk/manuals/tsemmanual/TSEM1815.htm

moonrakerz

Is that really relevant ?

"An instrument or deed of variation or family arrangement enables beneficiaries of a deceased’s estate to alter the distribution of that estate."

IHT is paid before the estate is distributed; distribution has little effect on the amount of IHT payable, except perhaps if you are going to give a lot to charity - which would seem to defeat the object.

DavidLaGuardia

weechief1 wrote: »

me and my family inherited a large some of money which was to be divided equally between us. however the inheritance was tax a ridiculous sum- so is it possible to reclaim any of it back through any means?

The only situation I can think of is where a second death of two married people has occurred within two years, and wills have been written
A Deed of variation can alter the first will so that the full nil rate band can be used to give away funds to those appart from the husband or wife (no IHT on this amount). This means that on the second death this anount would not be in the estate of the surviving spouse.

localhero

Deeds of Variation are useful in the situation you describe, where upon first death of a married couple the estate has been left to the surviving spouse. This often creates a future inheritance tax liability which can be minimised or eliminated if acted upon within 2 years of death.

What you have suggested is therefore unlikely to be any use to Weechief who I suspect may have been single or the second spouse to die.

Weechief, you haven't given us many facts. Was the deceased married or widowed in the last 2 years?

Were all the investments valued correctly because if not you may be entitled to some IHT back (or pay more!), but it probably won't amount to much.

weechief1

localhero wrote: »

Deeds of Variation are useful in the situation you describe, where upon first death of a married couple the estate has been left to the surviving spouse. This often creates a future inheritance tax liability which can be minimised or eliminated if acted upon within 2 years of death.

What you have suggested is therefore unlikely to be any use to Weechief who I suspect may have been single or the second spouse to die.

Weechief, you haven't given us many facts. Was the deceased married or widowed in the last 2 years?

Were all the investments valued correctly because if not you may be entitled to some IHT back (or pay more!), but it probably won't amount to much.

unfortunately i dont think i will have any luck in my situation:-

it was left entirely in cash(no other assests,which i have been told is unusual with an estate of this size)
the deceased was never married

i am not very knowledgable in this subject,but, i was wondering if the 40%tax rate was set in stone or if it could be haggled with depending on other circumstances, or if there is another way to claim it back etc. however as i said i dont think im going to have any luck but any information would be much appreciated

localhero

Yes it is set in stone.

£300,000 @ 0%
the remainder at 40%

(Or if they died before 6th April 2007 £285,000 @ 0%)

:mad:

RayWolfe

weechief1 wrote: »

i am not very knowledgable in this subject,but, i was wondering if the 40%tax rate was set in stone or if it could be haggled with

Nice concept. I might try "haggling" with HMCE about my income tax rates. ;-)

weechief1

RayWolfe wrote: »

Nice concept. I might try "haggling" with HMCE about my income tax rates. ;-)

lol just seemed a bit steep since tax as already beed paid on the money.

PasturesNew

Set in stone I'm afraid.

dzug

weechief1 wrote: »

lol just seemed a bit steep since tax as already beed paid on the money.

????how????

All money, just about, has been taxed.

When it changes hands it's taxed again.