Inheritance Tax – an exemption not to be over-looked for those working in Emergency Services
Most taxpayers are familiar with the concept of Inheritance Tax (IHT) which is a charge on assets held in your estate on death; but less well known is the relief from IHT on such an estate where the deceased was putting his or her life at risk as one of the following:
- Member of the armed services
- Police and fire rescue services
- RNLI, cave and mountain rescuers
It would only seem fair that where an individual engaged in any of the above roles and loses his/her life as a result of such activities – ie effectively “dies in the line of duty” (past or present) – then IHT will not be charged on their estates subject to certain conditions.
There would be no IHT liabilities arising as a result of gifts (usually called Potentially Exempt Transfers) which become chargeable on death.
Likewise, no additional IHT would be payable on any “chargeable lifetime transfers” (usually a transfer into a trust) in the 7 years pre death.
Also (and usually the most important) – no IHT is payable on the death estate.
Other issues to consider to qualify for this important relief as follows and in no particular order:
- Often the injury (or illness) can occur many years before death but this should not prevent a claim.
- It does not matter if the deceased was in paid employment or a volunteer
- It’s important that the individual was responding to an emergency situation (even in some hoax situations the relief can apply) and in their capacity as an emergency responder.
To claim the IHT relief evidence will obviously be required – including records of the incident responded to together medical report and death certificate; this evidence is not required for armed service personnel as individuals killed in action are certified by the Defence Council.
If you need any further help or support on claiming any Inheritance Tax reliefs or exemptions please contact Nigel Shaw at: nigel.shaw@langricks.com OR on 07540 113289
Find out more about our Inheritance Tax Services
