IHTM33130 - Adjustments to sale price: statutory compensation received

Under IHTA84/S193 (3), you should adjust the sale price ( IHTM33072) when statutory compensation is payable to

• the person making the claim, or
• any person who is liable for tax attributable to the value of the interest under consideration.

The provisions applies where the statutory compensation arises because

• of the imposition of a restriction on the use or development of the land in which the interest subsists, or
• the value of the interest is reduced for any other reason.

The adjustment is made by simply increasing the sale price by the amount of the compensation. The imposition of the restriction or the other cause of the reduction in value is ignored for the purposes of IHTA84/S193 (1) and (2).