Inheritance tax allowance application deadline

taxed2oblivion

Do HMRC ever allow applications outside of the two year deadline?

For clarity I'm referring to:

Transferring unused basic threshold for Inheritance Tax

(search the government website for the above doc as I cannot post links)

I have been very unwell and only just found out there is a deadline.

I now stand to receive a huge tax bill, which I will be unable to pay and will effectively make me homeless, as selling the house I live in will realistically be the only way to pay the bill.

Does anyone know if a solicitor has successfully challenged this. It seems so cruel. What is this purpose of the deadline, if not to snare vulnerable people?

Nomunnofun1

taxed2oblivion said:

Do HMRC ever allow applications outside of the two year deadline?

For clarity I'm referring to:

Transferring unused basic threshold for Inheritance Tax

(search the government website for the above doc as I cannot post links)

I have been very unwell and only just found out there is a deadline.

I now stand to receive a huge tax bill, which I will be unable to pay and will effectively make me homeless, as selling the house I live in will realistically be the only way to pay the bill.

Does anyone know if a solicitor has successfully challenged this. It seems so cruel. What is this purpose of the deadline, if not to snare vulnerable people?

Can you explain the circumstances regarding the missing of the deadline? 

Keep_pedalling

When exactly did the person (presumable a parent) die? The time limit is from the end of the month of death not the date itself. 

What is the current value of the house? What is the total value of the estate

Although the estate is likely to pay a lot more IHT than it would have done and you may have to sell the house and downsize you are not going to be left homeless. 

taxed2oblivion

Severe anxiety and depression following the death of my mother and job redundancy, that happened a few months after her death. These would be the two biggest contributing factors to the decline of my mental health. So I neither had the mental energy / capacity to chase down administration of the estate, nor the financial means to get adequate help.

The few companies I tried to engage with to get info on the estate's assets were extremely obstructive and unhelpful. I could simply not afford a full service from solicitors having no income. The estate is almost all property so no money there to draw upon.

mybestattempt

taxed2oblivion said:

Do HMRC ever allow applications outside of the two year deadline?

For clarity I'm referring to:

Transferring unused basic threshold for Inheritance Tax

(search the government website for the above doc as I cannot post links)

I have been very unwell and only just found out there is a deadline.

I now stand to receive a huge tax bill, which I will be unable to pay and will effectively make me homeless, as selling the house I live in will realistically be the only way to pay the bill.

Does anyone know if a solicitor has successfully challenged this. It seems so cruel. What is this purpose of the deadline, if not to snare vulnerable people?

HMRC has discretion to accept late claims depending on the reason for the claim being made after the 24 months permitted period.


The guidance is here:

https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm43009

DRS1

If most of the estate is a house then you may have a longer period to pay the IHT - in instalments over 10 years I think.

taxed2oblivion

Thank you mybestattempt that is very much appreciated. There is still some hope then.

Keep_pedalling

How long ago did your mother die? What is the value of the house? 

taxed2oblivion

The estate is two houses. One house my sibling's family lives in and the other one I live in. Because it's a London 'burb house prices are ridiculous. My house couldn't really be any smaller. is very run down and is worth about £375K. My sibling's house is almost identical, so we're looking at ~£800K just for the two houses. Average property price in my area according to Zoopla is £500K. Realistically neither of us are going to able to service the debt that tax would generate, so we'd have to sell both houses and sell them quickly at below market value. Add on all the associated fees and services and there's no way we could buy anything here, owing to our respective employment and financial situations.