This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

Inheritance Tax Manual

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)


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

Sale of share to other part owner

If one of the persons entitled sells their share of designated heritage property to another person also entitled, the liability to pay tax on their share arises and the fact that the property remains in the family does not matter.

Breach of undertaking

Under the legislation the Board of HMRC 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.

Insurance claims

No charge arises in respect of insurance monies received as the result of the destruction or loss of, or damage to, property by fire, accident, theft or otherwise. You should refer your case to Heritage for the purposes of record and for consideration of any complications that might arise following payment of insurance monies.

Where there are associated properties, the destruction of an historic building does not trigger a charge on its amenity land and associated objects, provided undertakings continue to be observed. A later transfer of the land and objects is likely to be a chargeable event (IHTM04115) and may also be a chargeable transfer (IHTM04027) – conditional exemption can only be claimed if the land and objects qualify in their own right.