IHTM33022 - Procedures: issuing form IHT 38

The relief must normally be claimed on form IHT 38. In many cases the first you will know about a claim for loss on sale of land relief is when you receive the form IHT 38 from the taxpayers and you will need to follow the instructions ( IHTM33021) for handling a claim for relief.

In other cases you should issue a form IHT 38 if

• the taxpayers indicate that they wish to claim the relief
• the taxpayers notify a lower value than originally returned or agreed even if the relief is not specifically claimed (the exception is when the value is still under consideration by the VOA (23000)
• if the VOA tells you about a possible claim.

In the case of personal applicants ( IHTM02161) if you become aware that an interest in land ( IHTM33061) is being sold for less than the date of death value you should bring the relief to their attention and send them a copy of form IHT 38.

You should not issue form IHT 38 in the following circumstances

• where the difference between the sale price ( IHTM33072) and the value on death ( IHTM33100) is small and no relief is available (IHTM33083)
• the date of death value is still being considered by the VOA, when you should first report the sale price to the VOA ( IHTM33035)
• where there is a claim for relief on a sale of a joint interest in land ( IHTM33181) unless you are satisfied that the claim will not be disadvantageous ( IHTM33182) to the taxpayer
• where the taxpayers claim to substitute a higher sale value ( IHTM33026) and no tax is due on the sold land.