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HMRC internal manual

Inheritance Tax Manual

Calculating the loss: what is an 'overall loss'?

The basic rule is that for relief to be available there must be an overall loss on thesales of ‘qualifying investments’ (IHTM34131) sold by the ‘appropriate person’ (IHTM34161) in the 12 months following the death, IHTA84/S179 (1).

This means that all sales by the appropriate person(s) within this period have to be taken into account to see if there is an overall loss. Only if the gross sale proceeds of the qualifying investments that are sold is less than the aggregate date of death value of those investments will there be a loss to which the relief can apply.

If there is both free estate and settled property you should treat the claims by the legal personal representatives and trustees entirely separately and calculate the overall loss at each title.