Service/Compliance procedures: is the claim for relief in the approved format?
You can only accept a claim for loss on sale of shares relief if it is made on form IHT 35 by the ‘appropriate person’ (IHTM34161). If there is more than one executor or trustee they will all need to sign the form.
Form IHT 35 provides all the information that we need in order to consider a claim for relief. If a claim is made in any other way (for example, in a letter or by corrective account (IHTM10000)) you should send a copy of the IHT 35 to the taxpayers or their agents. You should explain in a covering letter that
- we can only accept claims that are made on a form IHT 35, and
- the appropriate person must complete and return a signed copy of the form.
The claim must be made within 4 years of the end of the 12 month period during which qualifying sales can be made, IHTA84/S179 (2A).. You may receive more than one claim from the appropriate person if, for example, blocks of shares are sold at different times within the year following the death. The appropriate person must also complete a separate IHT 35 if relief is being claimed for losses on shares held as part of an underwriting deposit (IHTM34080).
Generally you should leave it to the taxpayers to decide whether they wish to make a claim. But you should bring the relief to the attention of personal applicants and advise them to complete a form IHT 35 if you become aware that shares are being sold.
You should not leave your case or enquiry open to wait for possible claims for relief.