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HMRC internal manual

Inheritance Tax Manual

HM Revenue & Customs
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Appropriate person: basic condition

The sale of shares must be by the ‘appropriate person’. The appropriateperson must also claim the relief.

The appropriate person is the person who is liable for the tax that is payable on the‘qualifying investments’ (IHTM34131). This meansthat for the free estate the appropriate person will normally be the legal personalrepresentatives and for settled property it will be the trustees, IHTA84/S178 (1). Anexample of an appropriate person who is not a personal representative or a trustee is aspecific legatee who is bearing the tax.

Beneficiaries cannot make claims once the shares have been transferred into their namesunless they are actually paying the tax, IHTA84/S179 (3).