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My mother died in March 2007. The will passed on all of the estate to my father and he subsequently passed on about £100,000 to the 3 children as a gift so that if he died after 7 years that amount would not come under inheritance tax. However the probate for my mothers death did not happen until March 2008 - one year later even though the will was not contested and it was not particularly complicated. My father has now died in October - less than 7 years after probate which means that the £300,000 gifted now counts towards his estate and we have to pay inheritance tax of about £150,000 between us. I have heard that it is possible to contest this if the probate took too long - if it had taken the average 6-7 months we would not now be paying inheritance tax, can we appeal saying that the probate took too long and it was unreasonable?
Just short of £1million.
I don't think it was a year. It was just over the year. Also we have been told that we are not entitled to taper relief so we are paying tax on the full amount over the £650 tax allowance for both my parents.
Not sure - we have been told that it is because we received £271,000 between the 3 of us in Feb 08, after the death of the mother, followed by £357,000 between the 3 of us in March 12, as a result of the sale of the fathers property. The father died in Oct 14. The 3 of us have therefore received in gifts a total of £628,000 and we are told that we therefore have to pay full 40% inheritance tax on the remaining £376,000 apart from the £22,000 that brings the gifts received up to the £650,000 nil rate threshold. Do we get taper relief?
On the mother's death in 2007 her estate was passed to the surviving father - he then gifted £271,000 between himself and his 3 children equally.
This is where we are confused - we are being told that the taper would not apply to the first 2 gifts of £271,000 and £357,000 because they come below the £650,000 threshold and no tax is due. And that taper does not apply to the remainder of the estate as this is passing on father's death so no period involved.
Hi, we accept the situation about timing of the probate for the first gift - what we need to know about is our last question above about whether either of the 2 gifts received in 2008 & 2012 are eligible for taper relief, thereby reducing our IHT bill overall. many thanks
Hello - i wondered whether you have an answer re the taper relief - you were going to ask a colleague??
yes. at the moment we are have been told that we have to pay inheritance tax of just under £150,00 and that it is not subject to taper relief. I sit;ll don't understand why.
yes - he made the gifts in consolation with his solicitor.
we were hoping that my father would live longer than 7 years inwhich case - had he died after March 2015 then we would have no tax to pay (hence the questions about the length of time that probate took).
but it but appears that there is nothing that we can do.