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HMRC internal manual

Inheritance Tax Manual

From
HM Revenue & Customs
Updated
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Loss on sale of land: purchases: agricultural relief (AR) and business relief (BR)

If you receive a claim for relief in respect of an interest in land (IHTM33061) which qualified for agricultural relief (AR) (IHTM24000) or business relief (BR) (IHTM26000) at 50% at the date of death and the sale is at a loss, then

  • the AR or BR is preserved at its original rate, and
  • is applied to the substituted sale value (IHTM33073).

If a claim is made to substitute a higher sale price (IHTM33072) for the date of death value (IHTM33100) where no tax is due on the sold land because the sold land attracts 100% relief, you should deny the claim (IHTM33026).

If a claim is made to substitute a higher sale price for the date of death value and the land attracts relief at 50%, you should refer the claim to Technical.

You should also refer to Technical any claim where there is a sale of more than one interest in land and the claim includes land that attracts AR or BR which has been sold at a higher value than the date of death value.