(For this purpose ‘child’ does not include an
illegitimate child or a step-child.)
But not all sales to beneficiaries are excluded ( IHTM33082) from relief. Also a sale to a family company, which has any of the people listed above amongst its shareholders, or to trustees of a discretionary trust, which has such people as its objects is acceptable.
A sale is also excluded if in connection with the sale the vendor (or any of the persons listed above) obtains a right to acquire either
In some circumstances a non-qualifying sale can lead to an
adjustment in the sale price (
IHTM33141) of qualifying sales.
You should normally assume that sale is a qualifying sale unless the taxpayers answer questions 1 and 8 on the form IHT 38 ‘Yes’ or unless you have evidence to suggest that the above conditions apply.