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HMRC internal manual

Inheritance Tax Manual

Loss on sale of land: sales excluded from relief: small changes in value

IHTA84/S191 (2) excludes an interest in land from relief whether the sale results in a loss or gain, if the difference between the value on death and the sale value (IHTM33073) is less than:

  • £1,000, or
  • 5% of the value on death,

whichever is the lower.

If a claim is made where the loss or gain is below these limits you should tell the taxpayers that no relief is available.