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Individual overpays £30,000 due to ‘misleading’ IHT form – Today’s Will’s & Probate

Monday October 23, 2023

According to Today’s Will’s & Probate – A solicitor has raised concerns about a potentially “misleading” inheritance tax form that could result in Britons overpaying by thousands of pounds, as reported by Express.


Here’s a snippet of the article:

Jessica Partridge, a partner specialising in private client law at Mayo Wynne Baxter,  highlighted the IHT436 form, describing it as “really misleading” after a client misunderstood the rules, leading to an overpayment of £30,000.

Introduced in 2018 at £100,000, the residence nil rate band has since increased to the current £175,000. However, the guidance notes in the form stipulate:

“Where the spouse or civil partner’s death occurred before 6th April 2017, the Residential Enhancement at that time is deemed to have been £100,000.”

The misunderstanding arises when dealing with estates where one partner passed away before 2017. In such cases, there is confusion regarding the applicable allowance — the client assumed an allowance of £100,000, not realizing that, in fact, the unused percentage of the first partner’s allowance could be transferred.


You can read more HERE

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