During the probate process, the assets of
someone that has died are valued based on the date of their death. This
includes their bank accounts, shares, property and any other assets that they
owned. If inheritance is payable on the estate, these values will be reported
to HMRC and the inheritance tax liability is calculated against those
valuations.
In some instances, the deceased’s house or shares may sell for less than they were valued for probate and this may mean that the estate is eligible for an inheritance tax refund. Property In order to be eligible to claim a refund, the property in question must have been sold within 2 years of the date of death. This means that completion must take place before 2 years period ends. If this is the case, the estate may be eligible for the Sale of Land relief, if the sale price of the property is at least £1,000 or 5% less (which is the lowest) than the probate valuation. |  |
Shares
In order to claim a loss on sale of shares, the qualifying shares must be sold within 12 months of the date of death.
Qualifying shares include shares and securities listed on a recognised stock exchange at the date of death, Gilts (UK Government Stock) and holdings in unit trusts.
If you need any help working out whether the estate your dealing with is eligible for a refund or to assist with claiming a refund please do not hesitate to contact Jasmin Howlett on 01394 277 941 or at jasmin@fairstep.co.uk, alternatively fill out our contact form, and we would be happy to discuss your requirements in further detail.