IHT rebates are due to many people, according the the latest issue of The Heir Hunters Association Newsletter.
More than 20,000 people may be due an average £4,260 IHT rebate after paying too much inheritance tax as property prices have fallen over the last four years, research has found.
The figures are the result of falling house prices over the last four years, as experts calculate a drop of around 11 per cent . British home owners could have overpaid a total of £90 million in IHT after inheriting residential properties, according to figures released recently.
A study by a financial services provider showed an estimated 21,000 estates could be owed an average £4,260 IHT rebate, as “many people don’t realise” what they may be owed.
Those who inherited property between June 2008 to February 2009 and June 2010 to August 2011 are the most likely to be eligible for an IHT rebate, it was said.
The figures are the result of falling house prices over the last four years, as experts calculate a drop of around 11 per cent.
Inheritance tax, which is based on the value of the property at point of death, can be reclaimed if the property sells for less within four years.
Tax specialists at NFU Mutual have now calculated the difference could add up to £90 million in IHT rebates across the country.
Sean McCann, personal finance specialist at NFU Mutual, said: “Many people don’t realise that they can claim an IHT rebate if the property they inherit sells for less than it was valued at during probate.
“And with house prices generally falling across over the last four years, thousands of people could still be able to claim an IHT rebate on any such overpayment.”
The estimations were made using a combination of inheritance tax breakdowns from HMRC and monthly house price data from Land Registry.
NFU Mutual estimated the fall in the value of properties liable for inheritance tax between probate valuation and eventual sale on a month-by-month basis over the last four years and therefore how much tax may have been overpaid.
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