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HMRC internal manual

Inheritance Tax Manual

Sales of related property, etc: who may make sales?

To qualify for relief the sale must be by the deceased’s personal representatives or by persons in whom the property (IHTM04030) vested immediately after the death, IHTA84/S176 (3)(a). This might include

  • the trustees of a settlement where the deceased was life tenant of the settled property, or
  • a surviving joint tenant or a survivor under a special destination in the title of land.

Where the property forms part of the deceased’s personal estate at death, this condition is likely to exclude any sale by a beneficiary under will or intestacy.

Although the legislation reads ‘in whom the property concerned vested’ you should take this as reading ‘was vested’ so as not to exclude vendors, for example, trustees, in whom the property was vested before death.