IHTM23016 - Investigation of form IHT405: Part 4 of form IHT405 – Property sale

Part 4 asks whether any land has been sold or whether it is intended to sell any land within twelve months of the date of transfer. If the answer to this question is ‘yes’ the taxpayer is asked to complete columns lettered A and F on the form. These columns contain the following information:

A the item number of the property (from column A ( IHTM23014))

B. whether the property

• has already been sold
• is on the market for sale, or
• is to be sold later on

C. the asking price or the price agreed for the sale

D. whether the sale was at ‘arms length’ to a stranger or whether it was to a relative, friend or even business colleague

E. where the sale price includes fixtures, fittings, carpets, curtains etc. how much of the sale price is attributable to the value for those items

F whether the taxpayer wishes to use the sale price as the value at the date of death

If the question is answered ‘yes’ but the above information is not provided, you should ask for it before considering whether, or when, the VOA ( IHTM23002) referral should be made ( IHTM23018).

If the question is unanswered, assume that the answer is ‘no’ unless other information on the file indicates that the property is to be sold or has been sold. In that case you should obtain the above information before considering whether, or when, the VOA referral should be made.