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Sisters in inheritance tax battle | Sisters in inheritance tax battle |
(about 3 hours later) | |
The lawyers for two elderly sisters are due in court to begin their attempt to win the same inheritance tax rights as married, gay and lesbian couples. | The lawyers for two elderly sisters are due in court to begin their attempt to win the same inheritance tax rights as married, gay and lesbian couples. |
Joyce and Sybil Burden, from Wiltshire, have lived together since birth but if one of them dies the other will face a large inheritance tax bill. | Joyce and Sybil Burden, from Wiltshire, have lived together since birth but if one of them dies the other will face a large inheritance tax bill. |
They fear the one left will have to sell the family home to pay it. | They fear the one left will have to sell the family home to pay it. |
Joyce, who is 88, and Sybil, who is 80, are taking the case to the European Court of Human Rights. | Joyce, who is 88, and Sybil, who is 80, are taking the case to the European Court of Human Rights. |
They decided to take action in the wake of the Civil Partnership Act 2004. | They decided to take action in the wake of the Civil Partnership Act 2004. |
We nursed my mother and father and two of my aunts in this house until they died Joyce Burden Sisters angry over tax bill href="/1/hi/business/3038792.stm" class="">Inheritance tax introduction | |
It granted the same rights that married couples enjoy to gay and lesbian couples, but not to family members. | It granted the same rights that married couples enjoy to gay and lesbian couples, but not to family members. |
If a husband or wife dies then the estate passes to the surviving spouse without paying tax. | If a husband or wife dies then the estate passes to the surviving spouse without paying tax. |
The Burden sisters say this amounts to discrimination under the terms of the European Convention of Human Rights. | The Burden sisters say this amounts to discrimination under the terms of the European Convention of Human Rights. |
Christopher Tidmarsh QC, an inheritance law expert, said while the European Court must think the case had some merit, the sisters would face a tough fight. | Christopher Tidmarsh QC, an inheritance law expert, said while the European Court must think the case had some merit, the sisters would face a tough fight. |
"I think it is a very difficult case myself. | "I think it is a very difficult case myself. |
"The difficulties lie in actually describing what it is about the relationship that brings it within the exemption or makes it analogous to the exemption." | "The difficulties lie in actually describing what it is about the relationship that brings it within the exemption or makes it analogous to the exemption." |
Ahead of the case at the European Court of Human Rights in Strasbourg, the government refused to comment. | Ahead of the case at the European Court of Human Rights in Strasbourg, the government refused to comment. |
But a spokesman said inheritance tax affected only 6% of estates. | But a spokesman said inheritance tax affected only 6% of estates. |
'Changes needed' | 'Changes needed' |
Ann Widdecombe, the Conservative MP, said changes to the current system are needed. | Ann Widdecombe, the Conservative MP, said changes to the current system are needed. |
"You would get rid of all these anomalies if you just get rid of the tax or else raised the threshold to such a point that you'd really be wealthy enough to sustain it." | "You would get rid of all these anomalies if you just get rid of the tax or else raised the threshold to such a point that you'd really be wealthy enough to sustain it." |
Inheritance tax affects estates which are valued at more than £285,000 - but the government intends to further increase the threshold to £325,000 by 2010. | Inheritance tax affects estates which are valued at more than £285,000 - but the government intends to further increase the threshold to £325,000 by 2010. |
An estate includes the value of a person's property and as house prices have increased dramatically in recent years, the property can easily make up the bulk of the £285,000 threshold. | An estate includes the value of a person's property and as house prices have increased dramatically in recent years, the property can easily make up the bulk of the £285,000 threshold. |
This situation is most acute if the deceased person lived in London or a similar property hot spot. | This situation is most acute if the deceased person lived in London or a similar property hot spot. |
Some tax experts believe that the threshold could be increased to £400,000 - which would mean only the very wealthy would fall within the tax. | Some tax experts believe that the threshold could be increased to £400,000 - which would mean only the very wealthy would fall within the tax. |