IHTM33043 - Procedures: what you should do when the relief is agreed

When the loss on the sale of land is agreed (either as claimed or after amendment) you will need to amend the estate on COMPASS by entering the allowable loss as a relief.

You should also consider if it is appropriate at this stage to repay tax ( IHTM31601) that is overpaid. Generally you should look to make a repayment unless box 2 on page 4 of the IHT 38 has been ticked, as further purchases or sales are planned. In this case you should check the position with the taxpayers and ask whether they wish to receive an interim repayment. Any repayment should be made to those named on page 4 of form IHT 38.

The relief can only be allowed on a provisional basis ( IHTM33044) unless

• four years and four months have elapsed since the date of death,
• no further amendment ( IHTM33044) to the relief is possible, or
• box 1 on page 4 of the IHT 38 has been ticked.

If the relief has been allowed on a provisional basis you will need to explain this to the taxpayers.