Inheritance tax bills may have been high

Thousands of Britons may have paid more inheritance tax (IHT) on residential property than they should have, according to new industry figures.

IHT – which is based on the value of the property at the owner’s death – can be reclaimed if the property sells for less within four years.

With house prices falling by around 11 per cent over the last four years, financial services provider NFU Mutual said that up to £90 million in tax could be reclaimable.

This equates to an average rebate of £4,260 among an estimated 21,000 estates. Those who inherited between June 2008 to February 2009 and June 2010 to August 2011 are the most likely to be eligible for money back.