Families have filed more than 18,000 claims for overpaid inheritance tax over the past three years, primarily linked to property sales. Two-thirds of these claims, totaling 12,915, relate to homes selling for less than their probate valuations. The number of related claims increased by 65% between the 2022-23 and 2024-25 tax years due to market volatility. Factors contributing to the rise include a slowdown in the housing market and the impact of frozen inheritance tax thresholds, which have forced more estates into the IHT net while still resulting in losses upon property sales.
Over the past three years, families have made more than 18,000 claims for overpaid inheritance tax (IHT), with property sales contributing significantly to these claims.
The number of IHT reclaims related to property rose by 65% between the 2022-23 and 2024-25 tax years, driven by market uncertainty and housing volatility.
Housing market volatility and a post-pandemic slowdown have resulted in homes selling below their probate valuations, causing a spike in claims for Loss on Sale of Land relief.
Frozen IHT thresholds have dragged more estates into the IHT net, leading to overvalued estates in volatile markets and ensuing refund eligibility.
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