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19 January 2010
A client was widowed in 1966. Her late husband left the whole of his estate to her and estate duty was paid. The client has recently died, but is the estate entitled to any additional inheritance tax nil-rate band?
Our client Jill was widowed at the age of 50 in 1966 and remained a widow until her recent death. At the time of her husband Jack’s death estate duty was in force and his entire estate was left to Jill.
As there was no spouse exemption in place under estate duty at that time Jack’s nil-rate band was used up and a small amount of duty was paid.
Following Jill’s death the second nil-rate band is unavailable as Jack’s nil-rate band was fully used up in 1966. It seems to us that when the rules were changed in October 2007 the treatment of these early death cases was not addressed and leads to an inequitable result.
Can any Taxation readers suggest how we should pursue this further?
Query 17 532 – Ever Hopeful
Reply from Terry ‘Lacuna’ Jordan BKL Tax
Ever Hopeful...
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