header-logo header-logo

15 May 2008 / Julian Washington
Issue: 7321 / Categories: Opinion , Tax , Wills & Probate , Other practice areas
printer mail-detail

Death and taxes

The Burden sisters could not have won their case without unravelling some of the fundamentals of the tax system, says Julian Washington

Sybil and Joyce Burden are aged 82 and 90 respectively. They are sisters, both unmarried, and live together in a family home near Marlborough, Wiltshire, which was built on a piece of land inherited from their parents. Every year since 1976 they have written to the chancellor of the exchequer before each budget about a tax problem and asked for the rules to be changed.

The essence of their problem is that, unlike in the case of spouses, where there is generally complete exemption from inheritance tax on the first death, no such exemption will be available when Joyce or Sybil dies. In all likelihood this will cause the survivor to have to sell the house in order to fund the tax bill. As for many people, the greatest part of their wealth is in bricks and mortar; they do not have enough liquid assets to pay the tax when the

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Switalskis—Sally Ann Masih, Suzy Overton & Jane Beaumont

Switalskis—Sally Ann Masih, Suzy Overton & Jane Beaumont

Trio of recruits strengthens Switalskis residential property team

Ward Hadaway—Steven Hayward

Ward Hadaway—Steven Hayward

Birmingham law firm appoints construction partner

Flint Bishop—six appointments

Flint Bishop—six appointments

Flint Bishop accelerates Northern growth through strategic senior appointments

NEWS
A High Court decision has clarified that a home may be unfit for human habitation not only where conditions endanger health or safety, but also where they seriously undermine comfort and convenience

A longer time limit for employment tribunal claims, new charity law thresholds, property tribunal recruitment and appellate guidance on small-claims costs feature in the latest Civil Way round-up

A recent High Court ruling could make issue estoppel considerably more complex in cross-border litigation, requiring parties to consider the foreign law governing the underlying claim
The Supreme Court has overturned Cheshire West’s bright-line test for deprivation of liberty, replacing it with a broader, more contextual assessment that gives greater weight to an individual’s wishes, feelings and apparent consent
Jonathan Fisher KC’s wide-ranging fraud report contains worthwhile proposals, but turning them into workable reform will require money, capacity and political will
back-to-top-scroll