Inheritance tax and unused basic threshold rollover stuff!

[dickymint]

Apologies in advance for not knowing correct terms/language etc.or accurate figures.

My Father died in 1987 leaving everything to Mum however we did a deed of variation so that my brother and I inherited Dad's block of shares in the family business (private limited company) that we also worked for. It was about a 30% shareholding. At the time no inheritance tax was payable and when we finally sold our block (around 18 years ago) no capital gains were payable.

Sadly Mum has passed on so the wheels are now in motion and has to be dealt with. My understanding is that when Dad died there was no such thing as rolling over unused nil rate threshold however since the tax changes it seems that it's possible that Mums estate accrues zero IT if below £600,000 ish which is about what we think it will be?

So my question is will this deed of variation come back to bite us in the bum as regards the rollover? For clarity my Sister is sole executor, which I have no problem with other than She is a penny pinching control freak that is likely to reflect in paying for decent advice!

Any insight appreciated.

[Jon39]

Sorry to read about the loss of your mother.

I am no expert, but am always interested to know the answers to such questions.

I think the deed of variation was in effect your father leaving a different will, so therefore the value passing to your mother would exclude you and your brothers portion of the family business.

The more recent rule about estates passing to spouses, then later being entitled to a higher inheritance allowance, presumably is retrospective.


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