What’s the consensus on IHT on the Woodford compensation?
So far as was possible, we have put in the closest figure we could get for probate, but now we are all receiving the proceeds of the compensation deal.
What is the value of that at date of death? As an old person, I recall that for Building society demutualisation, HMRC wanted us to declare what we were getting as an IHT asset, with varying percentages of the amount due, depending on when the client died. Seems that would be the right sort of approach. For the cases where this was the only outstanding point, I’d like to pay the cash away, but ought I to reserve 40% of this latest figure pending clarity from HMRC. It is the kind of thing they cover in their newsletter, but we can’t expect that until August.
I have ignored any tiny balancing payment as that is likely to be swallowed by professional fees, but there could be a few pence.
Regards
Terry
