Inheritance tax: IHT Nil-Rate Band - May 2008
The 2007 Pre Budget Report announced that legislation would be introduced in Finance Bill 2008 to allow any inheritance tax (IHT) nil-rate band unused on a person's death to be transferred to the estate of their spouse or civil partner who dies on or after 9th October 2007.
Since this announcement there has been some concern in the press that H.M. Revenue and Customs will only allow claims including available allowances from the spouse, where full paperwork/evidence can be provided to substantiate the claim. In some cases where the first spouse died some years ago, documents may already have been destroyed, either by the Solicitor or family members and therefore no evidence of unused relief be remaining. Where this is the case it may be difficult to convince H.M. Revenue and Customs of a claim for further nil rate band. If you think there may be a possibility that relevant documents relating to a pre-deceased spouse could be destroyed, please take the necessary steps to protect this now, by calling your Solicitor, or keeping/obtaining copies of the relevant evidence of unused nil rate band.
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