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HMRC internal manual

Inheritance Tax Manual

Sales: cancellation of shares

For deaths on or after 16 March 1992, relief is available if

  • qualifying investments (IHTM34131) are held at the date of death
  • they are cancelled without replacement within 12 months of the death, and
  • the shares were still held by the appropriate person (IHTM34161) immediately before the cancellation.

If all the above conditions apply the investments are treated as having been sold immediately before cancellation for £1, IHTA84/S186A.