Inheritance tax (IHT) paid on inherited property is based on its value at the time of death. However, should you sell the property for less within four years then you can claim back the IHT in the form of a rebate.
Given the recent decline in house prices thousands of people could be in line for a tax rebate. Estimates suggest that, based on a combination of IHT figures from HMRC and monthly house price data from the Land Registry, a total of around £90 million in tax could reclaimed.
That equates to around £4,260 on the approximate 21,000 estates that contained residential property in the last four years.
How to make a claim for a rebate
Simply complete the following HMRC form.
Image courtesy of FreeDigitalPhotos.net
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