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

HMRC internal manual

Inheritance Tax Manual

Loss on sale of land: disadvantageous claim

A claim following a sale at less than death value may not always be to the taxpayer’s advantage because

  • there are various provisions for adjusting the sale price (IHTM33072)
  • the relief involves substituting the sale value (IHTM33073) for the date of death value (IHTM33100) for all interests in land sold (IHTM33090) by the claimant in the same capacity
  • in the case of jointly owned property, there is no joint property discount from the gross sale price of the entire property (IHTM33182)

The taxpayer cannot withdraw a claim once it is made.

The taxpayer may try to make a claim following a sale at more than the date of death value even though it is clearly disadvantageous for Inheritance Tax purposes. Where this happens you should the instructions at IHTM33026.