Inheritance tax cuts on the cards?
10 November 2008
If you are left a property in a will and its value drops after the date of death, you could potentially benefit from a cut in inheritance tax.
John Whiting, a partner at PriceWaterHouseCoopers told the BBC that the problem of falling house prices after death was widespread.
Mr Whiting said that although there weren't currently any measures in place to cater for the issue, those who find themselves in this position could seek help from HM Revenue and Customs.
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However he warned: "They may be sympathetic, but don't expect it to come down totally."
Mr Whiting pointed out that if people are still negotiating the value of the home at the time of their relative's death then there "is scope for arguing".
Those considering appealing to the Revenue for relief on their tax bill should remember that if they are granted lenience and a lower value is agreed but then the property goes on to be sold for a higher price, they may have to pay tax on the difference.
Capital gains tax is applicable from when you either sell or give away an asset which has seen an increase in value.
