Inheritance Tax relief

Gerry003

My wife's second parent has just died and their solicitors have let them know that as their father left his whole estate to his wife they will be able a percentage tax relief from him,  therefor reducing if not cancelling any IT. When my second parent (father) died in 2005, with similar circumstances, this was not offered to us and we had to pay IT. Was this allowance active in 2005 and what can we do now to reclaim it from our solicitors. Thank you. Gerry Turley.

Jeremy535897

Gerry003 said:

My wife's second parent has just died and their solicitors have let them know that as their father left his whole estate to his wife they will be able a percentage tax relief from him,  therefor reducing if not cancelling any IT. When my second parent (father) died in 2005, with similar circumstances, this was not offered to us and we had to pay IT. Was this allowance active in 2005 and what can we do now to reclaim it from our solicitors. Thank you. Gerry Turley.

9 October 2007, so no.

[Deleted User]

Hi,

found this,

Spouses and Inheritance Tax Allowances

Now to get down to business: the inheritance tax (IHT) threshold for married couples in the 2020/21 tax year is £650,000, providing the first person to pass away leaves all of their assets to their surviving spouse. There is no inheritance tax to pay on transfers between married couples.

When the first spouse to die leaves 100% of their estate to their surviving spouse, the deceased spouse’s entire £325,000 ‘nil-rate band’ — which was introduced at the start of the 2009/10 tax year and will remain frozen at £325,000 until at least end of 2020/21 tax year — passes to the surviving spouse, doubling the survivor’s nil-rate band to £650,000.

Gerry003

Thank you. So it appears from your reply that in 2005 this nil rate band did not exist or was there another kind of band rate?

[Deleted User]

Gerry003 said:

Thank you. So it appears from your reply that in 2005 this nil rate band did not exist or was there another kind of band rate?

The Nil rate band did exist - it just was not transferable to the spouse to be utilised upon second death.

https://www.co-oplegalservices.co.uk/media-centre/articles-sept-dec-2018/transferable-nil-rate-band-explained/