IHTM33161 – Purchases: background
Under IHTA84/S192 you need to adjust the sale price if the
appropriate person (
IHTM33050), while acting in the
same capacity, purchases an interest in land (
IHTM33061) and the purchase price (or
the aggregate of the purchase prices) does not exceed the aggregate
sale prices (
IHTM33072) on all qualifying sales. The
sale price must be adjusted in accordance with the instructions at
(
IHTM33162) and (
IHTM33163).
If the purchase price (or the aggregate of the purchase
prices) exceeds the sale price,
no sale of land relief is due at all.
You should note the following points
- purchases are taken into account only if
they are made during the period beginning on the date of death and
ending not later than four months after the last qualifying
sale
- a qualifying sale for this purpose is one
that is made within three years of the date of death (no account is
taken of any sales in the fourth year)
- the sale price is that arrived at after
making any adjustments necessary for changes in the interest or
underlying land (
IHTM33121), statutory compensation
received (
IHTM33130), leases (
IHTM33131) and valuations with
reference to other interests in land (
IHTM33132)
- the purchase price ignores expenses.
