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HMRC internal manual

Inheritance Tax Manual

HM Revenue & Customs
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Sales of related property, etc: conditions for relief

The following conditions must be satisfied before relief can be given for sales of related property

  • the relief must be claimed, IHTA84/S176 (2)
  • the sold property must have originally been valued under the related property provisions or in certain circumstances in conjunction with other property in the deceased’s estate (IHTM09755)
  • the sales must be by the personal representatives or by the person’s in whom the property was vested (IHTM09756) immediately after the death
  • the sale must be at arm’s length, IHTA84/S176 (3)(b)
  • the sale price must be freely negotiated at the time of the sale, IHTA84/S176 (3)(b)
  • the sale must not be made in conjunction with a sale of the related or other property with which it was originally valued (IHTM09757)
  • there must be no connection between those selling the property and the purchaser (IHTM09758)
  • those selling the property must not have a right to acquire the property or an interest in it (IHTM09759)
  • the sale price must be less than the original value (IHTM09760).