Elderly sisters 'unsuccessful in inheritance tax appeal'

Date: 29th April 2008

Two elderly British sisters have lost their appeal to be considered in the same way as a co-habiting couple over inheritance tax.

Joyce Burden, 90 and sister Sybil, 82, have lived together in Wiltshire all their lives, yet will have to pay inheritance tax when one of them dies, meaning their lifelong home will be sold from under the surviving sister, the BBC reports.

In a joint statement the sisters commented: "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."

Inheritance tax only applies to an estate when both partners - whether married or in a civil partnership - die, enabling the surviving partner to retain the estate until their death.

The Grand Chamber of the European Court rejected the sister's appeal of unfair discrimination by 15 votes to two, despite several members noting the "awful" nature of their plight.

Inheritance tax of 40 per cent is paid on all estate assets totalling over £312,000 upon death, although certain amounts such as charitable donations and gifts may be exempt.