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

HMRC internal manual

Inheritance Tax Manual

From
HM Revenue & Customs
Updated
, see all updates

Loss on sale of land: background

When an interest in land (IHTM33061) is sold for a price different from its date of death value within four years of the death, relief may be available under IHTA84/S190 -S198. In simple terms, the relief allows the sale price to be substituted for the date of death value.

An outline of the relief is given at IHTM33011.

There is a second and completely separate relieving provision (IHTM09751) in IHTA84/S176 that applies only when the property sold was originally valued in conjunction with other property for Inheritance Tax purposes.

This relief does not apply to land that is transferred during the deceased’s lifetime. There are separate rules (IHTM14621) for claiming relief if the value of this land falls.