header-logo header-logo

Death and taxes

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

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 first of them dies.

Unfair Advantages?

The sisters' letters to

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

NLJ career profile: Liz McGrath KC

NLJ career profile: Liz McGrath KC

A good book, a glass of chilled Albarino, and being creative for pleasure help Liz McGrath balance the rigours of complex bundles and being Head of Chambers

Burges Salmon—Matthew Hancock-Jones

Burges Salmon—Matthew Hancock-Jones

Firm welcomes director in its financial services financial regulatory team

Gateley Legal—Sam Meiklejohn

Gateley Legal—Sam Meiklejohn

Partner appointment in firm’s equity capital markets team

NEWS

Walkers and runners will take in some of London’s finest views at the 16th annual charity event

Law school partners with charity to give free assistance to litigants in need

Could the Labour government usher in a new era for digital assets, ask Keith Oliver, head of international, and Amalia Neenan FitzGerald, associate, Peters & Peters, in this week’s NLJ

An extra bit is being added to case citations to show the pecking order of the judges concerned. Former district judge Stephen Gold has the details, in his ‘Civil way’ column in this week’s NLJ

The Labour government’s position on alternative dispute resolution (ADR) is not yet clear

back-to-top-scroll