Inheritance Tax Again
There's a solution to this inheritance tax 'problem', which is that the alive sister can use an equity-release programme to fund the bill. As it's 40% of 50%, it's only 20% of the value of the house(s) she will have just inherited. In fact it's a lot less than that, as only the amount over 300k is taxed. In this case apparently it is on 437.5k, so the inheritance tax bill will only be about about 60k, less than 1/13th of the value of the property. I can't see how the suriving sister will lose any of her property.Nevertheless one of the sisters describes this situation and the Government's response as 'just like Nazi Germany' (source: Daily Mail, yesterday). You don't need to be Eve Garrard to believe that is a ludicrous and unpleasant comparison.
posted by Matthew @ 9/14/2006 06:38:00 PM
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