Frances Gibb, Legal Editor
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Two elderly sisters fighting for the same rights as married and gay couples have lost a final legal appeal for equal treatment.
In a 15-2 vote, the European Court of Human Rights in Strasbourg ruled that Joyce and Sybil Burden, who have lived together all their lives, do not face unfair discrimination under Britain’s inheritance tax rules.
Joyce, 90, and Sybil, 82, have been fighting for 32 years to avoid crippling inheritance tax on their £900,000 home in Marlborough, Wiltshire, when one of them dies.
They claimed that tax laws breached their human rights by exempting married and gay couples from paying inheritance tax, but not cohabiting siblings.
But the Grand Chamber of the European Court of Human Rights upheld an earlier human rights ruling yesterday that national governments were entitled to some discretion when deciding taxation arrangements.
The decision means that when one of the sisters dies the other will have to sell their four-bedroom property to pay the 40 per cent inheritance tax on its value above £300,000. If they had won their case, inheritance tax law would have had to change, to place cohabiting couples on an equal footing with married couples and “civil partnerships” in being exempt from inheritance tax.
The sisters have written to the chancellor of the day before every Budget since 1976, pleading for recognition under the tax rules as a cohabiting couple.
When the 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, claiming that the Act violated articles of the European Convention on Human Rights outlawing discrimination and guaranteeing the “protection of property”.
In 2006 the Burdens lost the case by a 4-3 majority of the panel of seven human rights judges, although three members of the court described their inheritance tax plight as “awful” and “particularly striking”.
But the appeal hearing, before a larger 17-member panel of human rights judges, produced a more decisive 15-2 majority against the sisters yesterday. The ruling marks the end of the sisters’ legal fight, but they vowed to continue lobbying Parliament on the issue after their “bitter disappointment”.
They said in a statement issued by their lawyers: “We are still 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 two aunts to the end, should find themselves in such a position in the UK in the 21st century. We certainly do not regret our decision to look after our family for a single moment; we were glad to repay them for the happy, good, Christian upbringing they gave us.”
“But we have been fighting for 32 years just to gain the same rights, as regards inheritance tax, as married couples and couples in civil partnerships.”
After losing the first case in 2006, Joyce Burden commented: “If we were lesbians we would have all the rights in the world. But we are sisters, and it seems we have no rights at all.”
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There is a way to address such clear injustices in U.K. tax law, known as Extra Statutory Concessions. HMRC publishes a list of these in a web document esc.pdf
It should have been possible for a concession to be granted in such cases to defer the tax until the second death.
Melvyn F. Oarton, Eastbourne, U.K.
I do not know what all the fuss is about, Why don't they have the ownership of the house transferred into joint owners and when one of the sisters dies the house then belongs to the other.
N.S., Stafford, Staffs
M Smith, Soton has the right idea - but it isn't even 55K! the 875K is property, and as they AREN'T married (or civil partners), they can deduct 10% from the value of their share - I make it only tax of 33K to pay - AND as it's property they can pay it over 10 years! Do an equity release if need be!
Anne, Manchester, UK
In Ireland the inheritance law was amended several years ago to allow siblings, same sex partners, even friend/co-habitees to inherit their family home from each other tax-free so long as they had lived together for three continuous years before the other's death. A fair solution that has worked.
Jill Kerby, Dublin , Ireland
I do feel sorry for them, but wonder if their plight has been exacerpated by some lawyer eager for the media spotlight. There are many things that they could have done to minimise the tax payable by simple inheritance tax planning (trusts, tenancy in common etc) if they had got some proper advice.
Ed, Brighton,
They seem to have decided many years ago to be partners in caring for their elders and becoming a team. It is a shame one will be stripped of almost half of her inheritence. They should sell..leave the country..put their money in a swiss account and live out their remaining years on a remote island
mary bullard, sumter,
Perhaps they could sell one of the two other properties that they own and which are worth a combined price of over £300k. That would take care of the IHT bill.
Lou Lou, Oxon, UK
Looks like some people's human rights are superior to others
A. Hazell, Canberra,
I appreciate this is distressing for them, but couldn't they make their point without comments like 'if we were lesbians we would have all the rights in the world' - untrue (whether they are lesbians or not is irrelevant, the problem is they are siblings and not partners) and smacks of homophobia.
Sarah, London, UK
It is really quite simple to right this wrong - just exempt homes under £1 million from inheritance tax. If I were in their shoes, I would raise money on the house and just spend it or give it away - anything rather than give it to Gordo to waste on more ministerial initiatives.
David Nammory, Liverpool,
About time inheritance tax was abolished. There is no acceptable reason why government should expect a cash handout whenever a citizen dies. By the time these properties are inherited, the state has already helped itself to a number of taxes from the deceased anyway. Inheritance tax is immoral.
jan gamm, Alicante, Spain
Two siblings cannot have a civil partnership just as a brother and sister cannot marry. Seven years and gifts are tax free. Not much use if you are 90, but they have been asking the Chancellor for a change in the law since 1976, so they had plenty of time. Spend it, gift it or the Government take it
David, Northampton, England
the law should be changed so that this potential injustice can be avoided, lets hope that when elected the Tories stick to their promise to exempt the 1st. million
John Wiggins, bath, banes
Why not go through a civil partnership ceremony? They are surely a "couple" in every meaningful sense of the word.
B dalcher, HITCHIN, HERTS,
Girls - just declare yourselves as a Gay couple and make Gordon wait for his wodge of cash.
Bry Barnes, Somerset, Uk
Utterly disgusting.
Liz, London,
Can't the sisters own the house as tenants in common, effectively making each of them equal and full owners of the property and thus avoiding IHT liability when one or the other dies as the house as there is nothing to inherit. This is what my sister and I have done when we bought a house together
Gabrielle, Leeds, UK
The Ladies deserve better treatment in a society which recognises rights of civil partnerships with same sex couples.
They should consider selling the property and spending the rest of their days on a cruise ships touring the warmer and friendlier seas.
Jack, Craigavon, Armagh
The Burdens' estate is more than the house. Your report of Sept 4 2006 said the house is £425k, 30 acres of leased-out farmland £125k and other property £325k. Total £875k.
If they have £437.5k each then IHT should only be £55k when one of them dies, leaving £820k. They are just being greedy.
Michael Smith, Southampton, UK
Is it not possible for the tax to be deferred until after the death of both sisters? If not, it ought to be, this is a ridiculous situation that needs to be changed. and one that probably affects many people from that generation. It's only tax after all.
P Webster-Brown, Alton, UK
I hope they decide to sell the house now - and spend, spend, spend to enjoy their 9th decade in the comfort that the taxman won't get it.
diana, derby,
This is appalling in anyone's book but clealry not the 4 pea headed judges (1 of them not surprisingly british!)
Clearly corruption runs deep in the corridors of governent that they need to STEAL £300,000 from two old dears on the death of one of them.
Gt Britain's tax laws are filthy!
Shaun, Newcastle, Tyneside
It is appalling that perversions of human nature should have precedence over such a longstanding arrangement between siblings. Both homosexual civil relationships and the sisters should be exempt from the single inheritance tax rules.
David Bachauer, Manchester , UK
It really is time this nonsensical tax was scrapped altogether. At the very least the value of the main house should not count towards it.
Can some top tax lawyer not find a way out for the Burdens?
Roger Tilbury, Worthing,