Overpaid inheritance tax

Sussex_Mike

I am an executor and a beneficiary for an estate on which we paid inheritance tax based partly on a property valued at £285k (3 estate agents on advice of our solicitor).  6 months on and having dropped the asking price 3 months ago to £250k there has been very little interest.  If we do manage to sell at, say £250k, I assume we can claim back the tax.  Is that correct?  If we were to sell to a home buying company for, say £220k, can we expect to claim back tax diffrence between £285k on IHT form and £220k actual selling price?

Keep_pedalling

You can claim overpaid tax using form C4 (corrective account)

https://assets.publishing.service.gov.uk/media/64c278787aea5b001407507d/8556174_DCS_RIS.pdf

mebu60

You have 4 years to claim overpaid IHT on property, 7 years for everything else. Form IHT38 for claiming refund.
Inheritance Tax: claim for relief - loss on sale of land (IHT38) - GOV.UK (www.gov.uk)

Albermarle

Sussex_Mike said:

I am an executor and a beneficiary for an estate on which we paid inheritance tax based partly on a property valued at £285k (3 estate agents on advice of our solicitor).  6 months on and having dropped the asking price 3 months ago to £250k there has been very little interest.  If we do manage to sell at, say £250k, I assume we can claim back the tax.  Is that correct?  If we were to sell to a home buying company for, say £220k, can we expect to claim back tax diffrence between £285k on IHT form and £220k actual selling price?

I believe as an executor, you have to try and get the best price. For sure this will not be with a home buying for cash company. An area infested by sharks.
They will not pay you cash immediately as such, but only when they find a buyer. Plus they are known for dropping the price at the last minute before exchange.
Better to offer a sharp price via the traditional estate agent and only accept offers from people not in a chain.