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HMRC internal manual

Inheritance Tax Manual

From
HM Revenue & Customs
Updated
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Loss on sale of land: interest in land: partnership interests

If the deceased was a partner in a partnership that owned land, they will only have an interest in the land for the purposes of IHTA84/S190 (1) if they were beneficially entitled to a share in it. Often the partners will have no beneficial interest in any of the individual assets of the partnership. So, the partner would not have a beneficial interest in any land owned by the partnership. But where the taxpayer or agent claims that the deceased had a beneficial interest in any land owned by the partnership and subsequently sold, you should refer the case to Technical.

In Scotland a partnership is a separate legal entity from the partners. So the partnership is the owner of the partnership assets and not the individual partners. If the taxpayer or agent claims that the deceased was entitled to the underlying interest in partnership land which has now been sold, you should consider whether the grounds for their claim are reasonable. If you believe that they are you should refer the case to Technical.