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HMRC internal manual

Inheritance Tax Manual

From
HM Revenue & Customs
Updated
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Loss on sale of land: sales excluded from relief: more than one interest in land sold

Where the ‘appropriate person’ (IHTM33050) acting in the same capacity:

  • sells more than one interest in land,
  • during the four year period,

all the sales by that person must be taken into account, IHTA84/S191 (1), apart from sales made in the fourth year for profit. This means that the sale value (IHTM33073) of all these sold interests must be adopted, whether these are higher or lower than the date of death value (IHTM33100).

Example

Aaron and Bridget, as trustees of a settlement, sell Whiteacre.

They are then replaced by Cheryl and Daniel who, as trustees of that settlement, sell Greenacre. All sales are within the four years after the death.

Both sales must be taken into account for the purposes of relief (the trustees are treated as a single and continuing body)

If Aaron and Bridget, as trustees of a different settlement, have sold a further property at a loss, any claim arising would be considered wholly separately. 

The only sales not taken into account in this way are

  • sales in the fourth year for more than the date of death value (IHTM33074), IHTA84/S197A (2), and
  • sales excluded from the relief (IHTM33081).

You must also refer to Technical any claim where there is a sale of more than one interest in land and the claim includes land that has been sold at a higher value than the date of death value, and that land is either

  • wholly exempt, or
  • attracts 100% relief.