No exemption

The deceased died in December 2006. Her estate was valued at just over £164 000 and included property and shares which she had inherited from her husband. Estate duty was paid on his death and afterwards the deceased had made a new will leaving the whole estate to her daughters.

HMRC said that the whole of the deceased’s estate was liable to inheritance tax.

The daughters appealed on the ground that the part of the estate should be left out of account because the assets were settled property derived from assets owned by the husband and that estate duty had been paid on the husband’s death.

The tribunal judge found that although the deceased had wanted to leave her estate to her daughters and carried out her wishes accordingly it was not sufficient for the exemption in IHTA 1984 Sch 6 para...