IHTM33011 - Loss on sale of land: outline of the relief

Under IHTA84/S191 (1), sale of land relief may be claimed when

• the ‘appropriate person’ ( IHTM33050) (most commonly the executors)
• sells ‘an interest in land’ ( IHTM33061) included in the deceased’s estate
• within four years of the death (which may be extended in the case of compulsory purchases ( IHTM33091)
• for a value different to its date of death value.

When this happens, the appropriate person may claim that the ‘sale value’ ( IHTM33073) should be substituted for the ‘value on the death’ ( IHTM33100).

Where the only interest in land included in a deceased’s estate is the residence, the relief is normally straightforward.

But once the relief is claimed, the sale price of all interests in land sold within the 4-year period ( IHTM33090) must be substituted for their date of death value. This includes those interests sold for more than the date of date of death value. The exception is property sold for a higher price in the fourth year ( IHTM33074).

There are situations where the sale price must be adjusted ( IHTM33111) to take account of special circumstances.

The relief is not available where

• the difference between the date of death value and the sale price is less than £1,000 or 5% of the value on death ( IHTM33083), whichever is the lower, or
• the sale is a non-qualifying sale ( IHTM33081), as defined by IHTA84/S191 (3).