In challenging market conditions, it’s likely that some bereft individuals will be inheriting investments that have fallen in value. Through IHT share loss relief, people inheriting investments can be entitled to claim a tax rebate when they sell certain qualifying investments at a loss. Strict rules, criteria and exemptions apply, however.
For example, to be eligible for the relief, the sale of the qualifying investment (shares listed on a recognised stock exchange excluding AIM, government bonds and/or holdings in investment funds) has to be within 12 months of the date of death. Interestingly, according to recent data¹, few people reclaim the overpaid tax, with just 1,640 taxpayers a year on average (between 2014 and 2019) applying for refunds after inheriting investments.
¹FoI request Boodle Hatfield, 2022
Talk to Us
Inheritance Tax Planning (IHT) is a complex area that requires consideration and careful planning – often over a number of years. As IFA’s based in Eastbourne, East Sussex, we support clients with inheritance tax planning, including inheriting investments, throughout Hastings, Uckfield, Seaford, Crowborough, Newhaven, Lewes, Bexhill, Tunbridge Wells, Brighton and Hove areas.
Please get in touch to learn more. Paul Clifford is an experienced and independent financial advisor based in Eastbourne, East Sussex.
You can also read more blogs about financial advice in our blog here.
Please read our VoucherFor reviews to see what our clients have to say.
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. The Financial Conduct Authority (FCA) does not regulate will writing, tax and trust advice and certain forms of estate planning.
It is important to take professional advice before making any decision relating to your personal finances. Information within this blog is based on our current understanding of taxation and can be subject to change in future.
It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK; please ask for details. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor.
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.
If you withdraw from an investment in the early years, you may not get back the full amount you invested. Changes in the rates of exchange may have an adverse effect on the value or price of an investment in sterling terms if it is denominated in a foreign currency. Taxation depends on individual circumstances as well as tax law and HMRC practice which can change.
The information contained within the blog is for information purposes only and does not constitute financial advice.
The purpose of the blog is to provide technical and general guidance and should not be interpreted as a personal recommendation or advice.
