Change in inheritance tax rules

Cressida100

A friend lost both of her parents in early 2023, probate is still ongoing. If there are changes in the inheritance tax laws in October will that affect those currently going through probate? I think probably not but checking to see if that is correct. 

lookbook

No those currently going through probate are on the old rules. 

tacpot12

Very difficult to know, but I think we can be certain that they won't change anything that relates to IHT forms that have already been submitted.

Cressida100

@lookbook thanks for clarifying! I was worried I had given the wrong information. That will put her mind at rest. 

Yorkshire_Dangermouse

lookbook said:

No those currently going through probate are on the old rules. 

Is that a certainty?  Would it not be that until the estate is finalised and distributed, with final accounts, it could be subject to retrospective legislation?

Labour governments have a history of introducing retrospective legislation, for example 2004 and 2008.

Keep_pedalling

Yorkshire_Dangermouse said:

lookbook said:

No those currently going through probate are on the old rules. 

Is that a certainty?  Would it not be that until the estate is finalised and distributed, with final accounts, it could be subject to retrospective legislation?

Labour governments have a history of introducing retrospective legislation, for example 2004 and 2008.

Nothing (except death) is a certainty, but I would say it is highly unlikely.

Yorkshire_Dangermouse

Keep_pedalling said:

Yorkshire_Dangermouse said:

lookbook said:

No those currently going through probate are on the old rules. 

Is that a certainty?  Would it not be that until the estate is finalised and distributed, with final accounts, it could be subject to retrospective legislation?

Labour governments have a history of introducing retrospective legislation, for example 2004 and 2008.

Nothing (except death) is a certainty, but I would say it is highly unlikely.

Agreed that highly unlikely - the point I was perhaps trying to make is that where the estate is still not settled, there is still a (very slim) chance that retrospective legislation might apply.  Once the estate is finalised and distributed, and final accounts prepared, I'd have thought that would prevent any impact from retrospective legislation. IANAL, so happy to have someone qualified to clarify!

Keep_pedalling

No one is qualified in knowing what a government will due in a future budget apart from the people making the decisions, however all previous changes have been based on the date of death not how far the administrators have got with winding up the estate and I can’t see that changing.

Grumpy_chap

Keep_pedalling said:

Nothing (except death) is a certainty

Don't forget taxes

My expectation is that the IHT rules relating to a death in the past will be whatever the rules were at the date of death.

Keep_pedalling

Grumpy_chap said:

Keep_pedalling said:

Nothing (except death) is a certainty

Don't forget taxes

My expectation is that the IHT rules relating to a death in the past will be whatever the rules were at the date of death.

Not everyone pays taxes. 

Yorkshire_Dangermouse

Keep_pedalling said:

No one is qualified in knowing what a government will due in a future budget apart from the people making the decisions, however all previous changes have been based on the date of death not how far the administrators have got with winding up the estate and I can’t see that changing.

Date of death - that makes sense!  Thank you.