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Sisters lose European tax battle | Sisters lose European tax battle |
(about 1 hour later) | |
Two British sisters have lost their final battle to avoid paying inheritance tax when one of them dies. | Two British sisters have lost their final battle to avoid paying inheritance tax when one of them dies. |
Joyce and Sybil Burden, aged 90 and 82 respectively, have lived together in Wiltshire all their lives. | Joyce and Sybil Burden, aged 90 and 82 respectively, have lived together in Wiltshire all their lives. |
The sisters appealed to the European Court to enjoy the same tax rights as married and gay couples, which do not apply to cohabiting siblings. | The sisters appealed to the European Court to enjoy the same tax rights as married and gay couples, which do not apply to cohabiting siblings. |
In a 15-2 vote, Human Rights judges in Strasbourg ruled they did not face unfair discrimination. | In a 15-2 vote, Human Rights judges in Strasbourg ruled they did not face unfair discrimination. |
The sisters, whose campaign has been part-funded from public donations, vowed to continue lobbying Parliament despite their "bitter disappointment". It is not an exaggeration that we feel as if we have been personally persecuted Burden sisters Q&A; The Burdens' inheritance tax | The sisters, whose campaign has been part-funded from public donations, vowed to continue lobbying Parliament despite their "bitter disappointment". It is not an exaggeration that we feel as if we have been personally persecuted Burden sisters Q&A; The Burdens' inheritance tax |
"We are struggling to understand why two single sisters in their old age, whose only crime was to choose to stay single and look after their parents and aunts, should find themselves in such a position in the UK in the 21st Century," they said. | "We are struggling to understand why two single sisters in their old age, whose only crime was to choose to stay single and look after their parents and aunts, should find themselves in such a position in the UK in the 21st Century," they said. |
"Having always paid our taxes and cared for our relatives and each other when necessary without any help from the state, we are now in the worrying and unsettling position of being unable to secure each other in our last few years. | "Having always paid our taxes and cared for our relatives and each other when necessary without any help from the state, we are now in the worrying and unsettling position of being unable to secure each other in our last few years. |
"It is not an exaggeration that we feel as if we have been personally persecuted. This is a day we hoped, as British citizens, we would never see.". | "It is not an exaggeration that we feel as if we have been personally persecuted. This is a day we hoped, as British citizens, we would never see.". |
The Grand Chamber of the European Court did, however, uphold an earlier ruling that national governments were entitled to some discretion when deciding taxation arrangements.The sisters' house is valued at £875,000 | The Grand Chamber of the European Court did, however, uphold an earlier ruling that national governments were entitled to some discretion when deciding taxation arrangements.The sisters' house is valued at £875,000 |
The sisters said the decision means that when one of them dies the other will have to sell their £875,000 four-bedroom property in Marlborough. | The sisters said the decision means that when one of them dies the other will have to sell their £875,000 four-bedroom property in Marlborough. |
Assuming the house is jointly owned, the surviving sister would have to pay inheritance tax of 40% on her half of the value of the property once the £312,000 threshold had been deducted. | Assuming the house is jointly owned, the surviving sister would have to pay inheritance tax of 40% on her half of the value of the property once the £312,000 threshold had been deducted. |
This would mean paying 40% of less than £130,000 assuming no other assets were involved. | This would mean paying 40% of less than £130,000 assuming no other assets were involved. |
Since 1976, the sisters have written to the Chancellor of the Exchequer the day before every Budget, pleading for recognition under the tax rules as a cohabiting couple. | Since 1976, the sisters have written to the Chancellor of the Exchequer the day before every Budget, pleading for recognition under the tax rules as a cohabiting couple. |
When the UK Civil Partnership Act of 2004 first recognised gay and lesbian couples for inheritance tax purposes, the sisters turned to the European Court of Human Rights. | When the UK Civil Partnership Act of 2004 first recognised gay and lesbian couples for inheritance tax purposes, the sisters turned to the European Court of Human Rights. |
HAVE YOUR SAYI think they should be exempt and it is disgraceful they do not have the same rights as couples. Yet another blow to being a single person who lives in the UK.Nik PysonSend us your comments | |
They argued that the Act violated Human Rights Convention articles outlawing discrimination and guaranteeing the "protection of property". | They argued that the Act violated Human Rights Convention articles outlawing discrimination and guaranteeing the "protection of property". |
In 2006, the Burdens lost the case by a 4-3 majority, although three members of the court described their inheritance tax plight as "awful" and "particularly striking". | In 2006, the Burdens lost the case by a 4-3 majority, although three members of the court described their inheritance tax plight as "awful" and "particularly striking". |
But the appeal hearing on Tuesday, before a larger panel, produced a more decisive 15-2 majority against the sisters. | But the appeal hearing on Tuesday, before a larger panel, produced a more decisive 15-2 majority against the sisters. |
The judgment said: "The absence of such a legally-binding agreement between the applicants (the Burdens) rendered their relationship of co-habitation, despite its long duration, fundamentally different to that of a married or civil partnership couple." | The judgment said: "The absence of such a legally-binding agreement between the applicants (the Burdens) rendered their relationship of co-habitation, despite its long duration, fundamentally different to that of a married or civil partnership couple." |
Matthew Elliott, chief executive of the TaxPayers' Alliance, said: "Inheritance tax is an unjust and unfair levy that hits bereaved families when they are at their most vulnerable. | Matthew Elliott, chief executive of the TaxPayers' Alliance, said: "Inheritance tax is an unjust and unfair levy that hits bereaved families when they are at their most vulnerable. |
"Whilst these brave sisters have lost this battle, the strength of public opposition to inheritance tax is growing all the time and we are getting closer to winning the war and abolishing it altogether." | "Whilst these brave sisters have lost this battle, the strength of public opposition to inheritance tax is growing all the time and we are getting closer to winning the war and abolishing it altogether." |