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Falling house prices lead to more IT rebates

Michael Lloyd

November 20, 2019

taxation

The number of people HMRC has repaid inheritance tax to because of falling house prices has more than doubled in the past two years, a Freedom of Information request from NFU mutual has found.

Between April 2010 and April 2017 there has been between 2,000 and 3,000 people repaid inheritance tax because they subsequently sold a property for cheaper than it was valued.

That number jumped to over 4,000 between 2017 and 2018 and increased to 4,500 between 2018 and 2019.

Sean McCann, chartered financial planner at NFU Mutual, said: “Many families may have paid more inheritance tax than they need to.

“If you’ve inherited a property recently you may well have overpaid inheritance tax considering the sizeable slumps in house values in certain areas of the country.

“When property prices and share values fall, rebates are not given automatically and need to be proactively claimed.

“Those that opt for do-it-yourself probate are not always aware that inheritance tax can be reclaimed in this way.

“With such a dramatic fall in house prices in some areas of the country, families should take advice to ensure they don’t miss out on any potential rebates.”


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