Families can claim refunds on lost share inheritance tax

Inheritance tax relief may help families recover costs from stock market losses.

Families can claim HMRC refund on lost share values

Families may soon claim refunds from HMRC on inheritance tax paid due to decreased share values. This relief, known as loss on sale relief, applies if shares inherited from a deceased loved one lost value within a year of their passing. Experts at Quilter have highlighted how market turbulence, linked to recent political events, makes this relief particularly relevant. Inheritance tax is fixed at 40%, so significant drops in share value can mean large savings. For instance, a £20,000 drop in share prices could lead to an £8,000 reduction in tax owed. To benefit, families must submit claims within four years using the official HMRC form and maintain accurate records of share values at the time of death and at sale.

This unexpected tax relief offers important financial help for families navigating challenging times in the stock market. Given the economic fluctuations caused by current political decisions, many families may not be aware of potential claims they can make. This showcases a gap in knowledge regarding tax regulations and highlights the necessity for better public awareness about available financial relief options. As stock values continue to fluctuate, the urgency for families to act quickly to recover costs has also increased. The potential impact of this relief could lighten the financial burdens many face.

Highlights

Families should take action now to maximize potential refunds while deadlines remain.