IHTM34011 - Loss on sale of shares: basic conditions
There is no time limit for claiming the relief. But before the relief may be claimed there are 4 basic conditions that must be met. These are summarised in the table below
| Condition | Comments |
| 1) The shares, etc., sold must be ‘qualifying investments’ | The following are
qualifying investments for the purposes of this relief
|
| 2) The sales must be within 12 months of death | The relief only applies
to ‘qualifying investments’ that are sold in the 12
months immediately following the date of death.
Special rules apply to investments that cannot be sold ( IHTM34155). You can find out more (IHTM34150) about this condition and what is or is not treated as a sale for the purposes of this relief at (IHTM34150). |
| 3) The shares must be
sold by the ‘appropriate person’
| To qualify for relief the
shares must be sold by the appropriate person. The appropriate
person is the person who is liable for the tax. This will usually
be the
|
| 4) There must be an ‘overall loss’ on the sales of the qualifying investments. | Relief is only available
if the gross sale proceeds of all shares sold by the
‘appropriate person’ within 12 months of death is less
than the date of death value for those shares. In other words there
must be an overall loss on all sales. And all sales of
‘qualifying investments’ have to be included in the
claim, not just those that have fallen in value.
Special rules apply if there are changes in shareholdings ( IHTM34181) between the date of death and the date of sale. There are also restrictions (IHTM34201) on the relief if the appropriate person purchases shares. You can find detailed instructions on how the loss is calculated at ( IHTM34171). |
