The adjustment to the sale price ( IHTM33072) is calculated by using the formula
| A | x (D – S) | |
| B |
where
A is the aggregate purchase price of all interests purchased
B is the aggregate sale price (after any adjustments 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) have been made, IHTA84/SS193 -195) of all of the interests sold.
D is the value on death ( IHTM33100) of the interest sold.
S is the sale price (after any of the adjustments also referred to at B above have been made under IHTA84/Ss193 -196) of the interest sold.
Where (D – S) is positive (as in the case of Blackacre in
the example at (
IHTM33163), the adjustment takes the
form of an addition to the sale price.
Where (D – S) is negative (as in the case of Whiteacre
in the example at (
IHTM33163), the adjustment takes the
form of a deduction from the sale price.
