There can be a risk that by reason of the time delay between valuing land and buildings for the purposes of lnheritance Tax and the sale of the same, the value may fall.
lnheritance Tax is paid on the date of death value and, in some cases, at least some of that is to be paid prior to Grant of Probate and although lnheritance Tax on land and buildings can be paid by instalments, the very fact that land and buildings may have been overvalued, will tend to drag up the value of the non-instalment lnheritance Tax payable prior to Grant of Probate. However, this is not necessarily anything other than a cashflow problem for Estates and families, provided they are aware that ‘loss relief on sale’ can be claimed in certain circumstances. This will lead to a recalculation of lnheritance Tax billed at a lower figure leading to an overall reduction in the amount paid in totality. There are rules as far as timing for the sale of property.
For more information please contact Edward Walter of Buss Murton Law LLP on T: 01892 502 320 or E: ewalter@bussmurton.co.uk
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