I am not sure how you feel that sometimes law and regulations seem so unfair to certain categories of people. Although it was a long time ago I recall two sisters lived in a very valuable house and apart from this house and their modest income they did not have a great deal of money. The house had been in the family for generations and the two elderly sisters wanted to ensure that when one of them died the other could stay living in the house. However, Inheritance Tax killed this completely. On the first death the remaining sister would be forced to sell their property just to pay Inheritance Tax.
They took that case to the UK courts and finally lost at the High Court. It was then taken to the European courts being their final chance to avoid this very unfair Inheritance Tax penalty.
When I tell my adult children of the unfairness that two men or ladies as partners can sign a civil partnership and in the same circumstances, they can leave their main residence to each other free of Inheritance Tax. Why should two brothers or sisters in the same circumstances be so badly penalised? My children will tell me” Don’t be silly Dad and get up-to-date with modern times.”
This matter is made even worse with the freezing of the death tax allowances for sixteen years. The use of fiscal drag for a bigger tax take.
Fortunately, there are other ways to reduce Inheritance Tax but sadly people are not always aware of them. We can help.
Trevor Downing FPMI FPFS
