Case Study – Successful Claim of Inheritance Tax Refund

Walker Foster offered legal advice and personal support to a client who was responsible for administering and executing an estate, helping him to claim an Inheritance Tax (IHT) refund that left the beneficiaries of the will almost £50,000 better off.

The Challenges

Our client was an executor of an estate. He had made an application for probate himself and he believed IHT was due to be paid. The estate was taxable, and an IHT400 inheritance tax return had already been submitted to HM Revenue & Customs (HMRC).

The executor had some concerns, however, as HMRC had calculated a higher tax bill than the executor believed was due. As such, the client approached our Wills & Probate team at Walker Foster for legal advice.

How Walker Foster Helped

We understood the client’s concerns, and Chartered Legal Executive Kelly Gill took the case on and proceeded to investigate further. Upon reviewing the file, it became apparent that there was no IHT to be paid - the initial IHT return has been completed without making use of the exemptions and relief that were available.

Additionally, a number of errors were found on the IHT400 return, meaning the relevant paperwork had not been completed correctly. This resulted in an overpayment of more than £49,000 in unnecessary inheritance tax.

After discovering this, Kelly made an application to HMRC to correct the tax position and make a claim for all of the available exemptions.

The Outcome

Despite the challenges that the executor faced, a full IHT refund was issued to the estate after Walker Foster led negotiations with HMRC, and the beneficiaries of the will were ultimately left £49,000 better off than they otherwise would have been.

The client was delighted with this outcome, and continues to use Kelly Gill and Walker Foster for all of his legal needs.

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Administering an estate can be stressful, especially after losing a loved one. If you would like advice or assistance from Walker Foster’s Wills & Probate team, please get in touch for a friendly and compassionate chat. Fill in our contact form to begin your enquiry.

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