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HMRC internal manual

Inheritance Tax Manual

FACET procedures: call

A ‘call’ is a payment that a shareholder has to pay to a company. It issometimes also referred to as an instalment. If any call was paid on any of the sold‘qualifying investments’ (IHTM34131), question 3(c)on page 4 of form IHT 35 should be ticked ‘Yes’. Details of any call paid shouldbe included with the IHT 35.

The value of the call has to be added to column A of the IHT 35. You can check in Extel tosee if the right amount has been included. If not, you will need to amend the IHT 35 andrecalculate the loss. If no call was included on the IHT 35 and you have to add it, itshould be marked ‘for IHT 35 purposes only’.

There is an example that shows how the date of death value and the loss are calculated atif there is call at (IHTM34175).

There are special rules that prevent the loss on the sale exceeding the value of theoriginal holding at the date of death. This situation may arise when the ‘appropriateperson’ (IHTM34161) makes a payment of call. You willtherefore need to check that the loss on sale when call is included does not exceed theoriginal value of the holding. If it does you should refer to the instructions (IHTM34106) that deal with limitations on loss on sale of sharesrelief to see what adjustments you will need to make.