Q: We’ve sold inherited assets at less than the estate valued them at but have already paid the Inheritance tax (IHT) based on the higher valuation. Is there anything we can do?
A: Yes, there is. There are an increasing number of cases of families successfully reclaiming overpaid IHT, but many are unaware that they can even do this.
Based on your question, I believe you’ve paid IHT within the six months deadline but have sold some assets later. If those assets, such as property or stocks and shares, have fallen in value since the initial valuation, then you may be able to reclaim the overpayment in IHT.
The executors of the estate should submit the relevant forms to HMRC upon disposal of the asset. For example, form IHT35 is used for qualifying investments sold within 12 months of death and IHT38 for property sold within four years.
