Frances Gibb, Legal Editor
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Two sisters in their eighties who claim that the law treats them less favourably than if they were a lesbian couple are to challenge Britain’s inheritance tax rules in Europe today.
Joyce Burden, 89, and her sister Sybil, 81, fear that they will have to sell the home they jointly own in Marlborough, Wiltshire, to pay inheritance tax when the first of them dies.
They will make a last-ditch appeal before 17 Grand Chamber judges at the European Court of Human Rights in Strasbourg, saying that they should have the same legal rights as gay couples in civil partnerships. An ordinary chamber of seven judges ruled against them last December by four to three.
Inheritance tax is levied at 40 per cent of the value of the estate, after an exemption is made for the first £300,000. Husbands and wives are exempt from the tax on each other’s estate; and, since the Civil Partnership Act 2004, so are gay couples.
The sisters’ house, which cost £7,000 to build in 1965, was valued last year at £875,000, attracting inheritance tax of about £236,000.
The sisters, who have lived together all their lives, argue that they should be treated no less favourably than civil partners. Because both are elderly, their estates are likely to be taxed twice within a few years: once on the first death, and again on the second.
The Government says that favourable tax treatment for civil partners is justified, because it encourages committed relationships. Ireland and Belgium have filed arguments with the court in support of the UK’s position.
When the Civil Partnership Bill was going through Parliament, the House of Lords tried unsuccessfully to extend benefits to family members aged over 30, who had lived together for at least 12 years. The European Court ruling last December held that the Government was justified in giving tax benefits to some groups while excluding others, to achieve legitimate social policy aims.
Julian Washington, a partner at Forsters, the Mayfair law firm, said that a victory by the sisters would force a “major revision to the UK tax system”.
Describing the battle as being like David against Goliath, he said: “It would be unwise to underestimate Joyce and Sybil Burden. It is impossible not to be impressed by their tenacity. These octogenarian spinster sisters argue that it is quite simply unfair that, when one of them dies, the survivor may have to sell their shared home to pay the inheritance tax.
“By contrast, they point out that if they were a lesbian couple in a civil partnership, they could benefit from complete tax exemption.”
But Julia Whittle, principal with Punter Southall, the nationwide financial adviser, said that a victory could cause a difficult precedent for the Revenue because the bulk of a family estate was often tied up in property. She said that if the judgment went against the sisters they could approach the Revenue for special consideration on how to pay the tax bill.
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Is there any legal reasons why two brothers or sisters cannot enter into a Civil Partnership?
Doug Coleman, Rochester, England
The point is that marriage has an essential procreative and social external purpose, whereas civil partnerships, by that criteria, have no more social purpose than unmarried people who are related to each other. That is the Burden sister's legitimate point.
The reason that previously siblings etc. have not complained about not having the rights of marriage is because nobody imagined that the state would dream of putting marriage on the same defacto level as other relationships that have no more value or validity as sibling relationships.
To specify that civil partners need to be of the same sex and unrelated is discriminatory, and to give civil partnerships the same defacto rights as marriage is unfair and attacks and undermines the common good.
Michael Calwell, Edinburgh,
I think the inheritance tax should be reviewed. As this example shows, a family could lose their family home to the taxman for no reason than having a beloved family member dies.
The tax should exempt the first property from tax.
Colin, London,
The sisters make a valid point, but there is no need to compare themselves to a lesbian couple in order to claim discrimination. They are also being discriminated against because they are not married to each other. It is examples like this that support the argument that inheritance and estate taxes ought to be levied once per generation rather than upon each transfer. Unfortunately that is an argument that works best before legislatures than before courts.
Pat Cain, Santa Clara, California, USA
Patricia Cain, Santa Clara, California
The exception tests the rule. And in this case the rule is perfectly justified. The tax exemption applies to married couples. If the Burdens were a married couple (whether heterosexual or homosexual) then they would receive the tax exemption. As they're not, they don't. It's like complaining that you don't receive a tax break that's for single mothers when you don't have children.
Octavia, OXford,
An easy andwer for the government is to scrap inheritance tax altogether. It is already a seriously onerous tax.
D avid Porter, Hull,
I live my mum, never moved out because with house prices the way they are I can not afford to. I am going to have to investigate whether it is possible to put my name on the title deeds to the house in order to try and avoid 'death tax'. I am worried that I am going to be hit with a huge tax bill in 30 years time
Glen, london, england
Its about time inheritance tax was abolished - why should we have to pay tax on something that has been paid for using already taxed monies ? Of course this will never happen because of the revenue being generated. Its a matter of time before we give all our income to the government and they give us pocket money instead !
waldekev, baughurst, hants
scrap inheritance tax!
Rich, Northampton,
I say increase the inheritance tax, and abolish all tax concessions, including those between married couples and civil partnerships. It is grossly unfair that some people inherit huge sums of money, while others receive nothing. Adding tax-free concessions into the mix merely adds insult to injury.
Matthew Bulley, London, UK
Why is there such a tax anyway? Im i the only person that thinks its wrong that the government should get 40%, given that it was already taxed when it earned by the person whom died.
Paul, St Ives,
If there was any justice the Government would not have a leg to stand on. However the ruling of the European Court, that giving tax benefits 'to achieve legitimate social policy aims', will allow any government to behave in any way it chooses. Another reason for Britons, and indeed all Europeans, to reject further integration into a monolithic European Government.
Roger Sykes, Christchurch, New Zealand
Amin Aswet, part of the point of the Burden sisters' argument is down to the fact that, as sisters, they are excluded from the group of people who are capable of entering into a civil partnership. In effect, it's the same situation as with a brother and sister who wished to marry.
Jonathan Dawkins, Bristol,
Hmmm...as the piece says, 'The Government says that favourable tax treatment for civil partners is justified, because it encourages committed relationships.'
Now, why is it not in the 'Government's' interest that two sisters whom have lived together all their lives should be seen as being in a 'committed relationship' as well? I don't see the issue here myself, but then again, I'm not a lawyer nor am I a politician (thank God!).
Elisha Moor, London, England
To Amin Aswet Unfortunately because these two ladies are related they are prohibited from entering into a civil partnership
Gill, London, England
Whatever the merits of changing the tax system to allow for this sort of situation, why is the comparison to gay couples necessary? It's almost as if to say "if those freaks can get favourable treatment then why are we being denied?" I don't recall any elderly brother-sister pairs in the past complaining that married couples have an unfair advantage. A committed gay couple with a civil partnership is no less a real couple than a married one.
Richard , London,
Jerry Springer wouldn't have a prob with the old ducks getting hitched, he'd have them on his show, for sure!
Celine Tucker, Lake Niagra, Canada
Suggest the sisters enter into a civil partnership
Amin Aswet, Gibraltar,
What a sorry country. I hope the Burden sisters - and common sense - will prevail.
I'm not holding my breath though.
lawrence brooker, London, England