For years, two co-habiting, British sisters have been fighting to avoid paying inheritance tax and potentially lose their home when the first one of them dies.

 

Joyce and Sybil Burden have lived together in Wiltshire all their lives and are now aged 90 and 82 respectively

 

They tried to claim the same tax rights as married couples and civil partners, where there is no inheritance tax, which does not apply to co-habiting siblings.    

 

After exhausting all channels over here, they took their fight to the European Court, claiming that it breaches their Human Rights.  In a 15-2 vote, Human Rights judges in Strasbourg ruled they did not face unfair discrimination.

 

The sisters said the decision means that when one of them dies the other may have to sell their four-bedroom property in Marlborough, which they have lived in since it was built, to pay the Inheritance Tax   

 

In 2006 the property was valued at £550,000.  As it is jointly owned, when the first one dies their half plus their other assets will be taxed at 40% on everything over the Nil Rate Band (currently £312,000.00).  Due to the value of the other assets, they state that this will mean that the property will be at risk in order for the survivor to raise finances to pay Inheritance Tax.

 

For over 30 years, the sisters have written to the Chancellor of the Exchequer the day before every Budget, asking for recognition under the tax rules as a co-habiting couple.  Nothing to help their situation has been enacted.  

 

It is difficult to understand why two single sisters in their old age, who chose to stay single, live at home and look after their parents and aunts, should find themselves in such a position in the UK in the 21st Century.  Just because the value of a person’s home is such that it takes you above an arbitrary tax threshold, is it right that you can find that the roof over your head is at risk?

This is not some fabulously wealthy couple asking for tax breaks. They just want to be secure in their home, having bought and paid for it, not to mention having paid tax throughout their lives. They simply do not wish to encounter financial difficulty and hardship, when the first one dies, due to an unfair tax system.