inheritanvce tax

[gardenmad]

If I am a maiden lady who is in a small business with my sister, also a maiden lady, and my sister dies, why is inheritance tax levied on the whole property and business, when half of it belongs to me?

[dzug]

Whilst nothing would surprise me, I really don't believe it is, assuming you are actually the legal owner of half the property.

[buildersmate]

Nor do I believe it.

[gardenmad]

Thanks you two, I wish you were in government, as I assure you that is the case - it means that I shall have to sell up to pay the tax - this government is only interested in BIGGGGG business, and we also rans who try to make a living are penalised at every turn.

[Buenchico]

You need to challenge the decision to levy IHT on your share of the business.

Dzug thinks that it's wrong, Buildersmate thinks that it's wrong, I think that it's wrong and, far more importantly, the HMRC website makes it quite clear that it's wrong:
http://www.hmrc.gov.uk/cto/customerguide/page7 .htm

Chris

[fredpuli47]

You don't say what form the business is in. Is it a company or partnership ? What occurs to me is that you may be able to claim 100 per cent relief on the business, whatever the tax that would otherwise be payable.The idea is that a business should not be forced to stop because tax has to be raised . I have this at present in the case of my late mother.She was the controlling shareholder in various trading businesses. Although the value of these holdings is calculated for IHT the executors can claim 100 per cent relief on the tax, so no tax is paid, because the businesses are trading and the assets , be they buildings or cash used in the business are all used in the businesses.

Ask advice of the Revenue or an accountant, about relief in this case.

[gardenmad]

Thanks Chris for your input - I had no idea there was such a helping hand - I am going to spend the day finding out. Thank you, Fred for your comments, very helpful and I am now very much cheered up and for that, you are all wonderful!