Another question, please, if you would be so kind.
An estate has IHT payable. IHT35 claim for relief on loss on sale of shares brings the IHT down to nil (the last month has been somewhat 'helpful'). Do the executors have to pay the tax in order to reclaim it?
This seems perverse, but on the front of IHT 35 it has a "helpful" statement at NOTE 1 "If no tax has been paid
there can be no appropriate person to make a claim." A claim has to be made, so it needs an appropriate person, and there is the reference to tax being paid - not payable. I can't really believe this, as presumably a payment of £1 would satisfy the requirement...
The full note is as follows:
"Only make a claim for relief if you are the ‘appropriate
person(s)’. The ‘appropriate person(s)’ are those liable for
the Inheritance Tax (IHT) on the value of the shares or
securities. For example, the executors, the administrators,
trustee(s) or donee(s). If more than one group of people
is liable for the tax, the ‘appropriate persons’ are those
who are actually paying it. Tell us the capacity in which
you are signing the form. All appropriate person(s) must
sign this form.
We cannot accept a claim signed by agents.
You cannot claim relief if no Inheritance Tax is due on
the delivery of the IHT account. If no tax has been paid
there can be no appropriate person to make a claim."
Thank you.
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