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HMRC internal manual

Inheritance Tax Manual

Loss on sale of land: procedures: finalising the relief

Where you have allowed provisional relief, as box 2 on page 4 of the IHT38 was ticked, you will need to reconsider this before you can finalise the relief. You should do this when:

  • four years and four months have passed since the date of death,
  • you are aware that no further amendment (IHTM33045) to the relief is possible, or
  • the file is otherwise ready for closure

whichever comes first.

If the relief is still provisional and you want to close your file before the end of the four year four month period you should refer your file to your manager who will decide whether:

  • the file can be closed, or
  • further enquiries need to be made to determine whether the relief may be regarded as final.

If the file has to remain open to review the relief you will need to send a form Sect 5A to be completed by the appropriate persons (IHTM33050) at the end of the four year four month period. When sending the Sect 5A you will need to tick the box that refers to loss on sale of land relief.

If the question on the Sect 5A is answered ‘No’, the relief will become final.

If the question is answered ‘Yes’ you will need to ask for a further form IHT38 to be completed.