The son of footballer Jack Charlton has been told he must pay £200,000 in inheritance tax (IHT) for the World Cup winners’ medal his father received following the England team’s 1966 victory over West Germany.
In an interview with radio station Talksport John Charlton said he had been left the medal in his father’s will but had been told it would be subject to IHT of £200,000.
John told Talksport the medal remained with his mother, along with the footballer’s shirt from the historic match, as transfers between married partners are exempt from IHT.
But according to Mike Hiner, estate planning specialist and founder of Strategic Asset Protection, the story isn’t about inheritance tax, but a gap in planning.
“There’s an established HMRC exemption for objects of national heritage significance, and a World Cup winners’ medal, one of only two left in private hands I believe, is a textbook case,” he explained.
“The family shouldn’t have had to hand it to Jack’s widow just to buy time. With the right advice in place before probate, this medal could have been protected for future generations without a six-figure tax bill hanging over it. That’s the real lesson here protecting what matters isn’t about avoiding tax, it’s about using the reliefs that already exist properly.”
Relief is available under s.30 of the Inheritance Tax Act 1984, Hiner – who is also known as the Asset Protection Guy – added. Items of national, scientific, historic or artistic interest can be claimed as conditionally exempt from IHT if the estate applies to HMRC or Arts Council England. In exchange for public access, such as a loan to a museum, no tax is due unless the item is later sold.
Hiner concluded: “A 1966 World Cup winner’s medal, one of only two still held by a winning family I believe, is about as strong a heritage case as you’ll find.”
One Response
Mike’s absolutely right to highlight the real issue here. This isn’t a story about tax it’s a reminder of how vital proactive, informed estate planning is when families are trying to protect items of genuine heritage value.
The reliefs exist, the mechanisms exist, and with the right guidance, treasures like this medal can be safeguarded for future generations without unnecessary pressure. A timely and important message for our sector.