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Proposal to allow exempt transfers between siblings

12 September 2022 / Terry Jordan
Issue: 4856 / Categories: Comment & Analysis
Sisters are doin’ it for themselves

Key points

  • A form of consanguinity relief for spouses and civil partners children and dependant relatives is afforded by IHTA 1984 s 11.
  • A private members’ bill starting in the House of Lords has introduced the Inheritance Tax Act 1984 (Amendment) (Siblings) Bill.
  • Unless TCGA 1992 s 58 is also amended the transferor sibling could land themself with a capital gains tax bill on a lifetime transfer of a chargeable asset.
  • If the home is jointly owned by siblings it should be owned as tenants in common.

The European Court of Human Rights case of Burden and another v UK (29 April 2008) was reported in ‘Too sisterly’ (Taxation 1 May 2008 page 479). Joyce and Sybil Burden were then aged 88 and 81 respectively and had lived together for many years. Neither had ever married. The sisters argued that the relevant UK inheritance tax provisions...

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