Inheritance Tax Law Under Fire
Posted on: 4th September 2006
Two elderly sisters who have lived together since birth are taking the Government to the European Court of Human Rights. Joyce Burden, 88 & Sybil 80, who live in Marlborough are set to face a large Inheritance Tax bill when one of them passes away which will result in the other being force to sell their family home.
The 2004 Civil Partners Act made it possible for same sex couples to benefit from Inheritance Tax laws whilst co-habiting couples are unable to make any such Inheritance Tax claims. The sisters are fighting to have cohabiting couples recognised in the same light as both those who are married and those who enter civil partnerships.
The threshold at which tax is paid is set at £285,000 with a 40% rate set thereafter, meaning that the sisters are set to loose a lot from their family home and grounds which is estimated to be worth £875, 000. Having written to the Chancellor before the budget every year since 1976 they were surprised when in 2005 they wrote to the European Courts with no legal advice and had their case accepted. Their legal bill is expected to top £20,000.