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HMRC internal manual

Inheritance Tax Manual

From
HM Revenue & Customs
Updated
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Heritage property: special situations

There are four special circumstances that can have an impact on whether a chargeable event occurs. These apply equally whether the property concerned is associated with other property (IHTM04115) or is a single item. (IHTM04113)

Allotment

Where there is no direction to sell, an allotment of designated property to a legatee in satisfaction, or part satisfaction, of his share of a deceased person’s estate is not regarded as a sale, provided that the legatee does not repay an equivalent in money which he had already received on account of such share.

Sale of share to other part owner

If one of the persons entitled sells his share of designated property to another person so entitled, the liability to pay tax in respect of such share arises and the fact that the property remains in the family is immaterial.

Breach of undertaking

Under the legislation the Board are responsible for deciding whether there has been a breach of the undertaking. Any case in which it is thought the terms have not been kept should be referred to Heritage Section.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)