The basic rule is that for relief to be available there must be
an overall loss on the sales of ‘qualifying
investments’ (
IHTM34131) sold by the
‘appropriate person’ (
IHTM34161) in the 12 months following
the death, IHTA84/S179 (1).
This means that all sales by the appropriate person(s) within
this period have to be taken into account to see if there is an
overall loss. Only if the gross sale proceeds of the qualifying
investments that are sold is less than the aggregate date of death
value of those investments will there be a loss to which the relief
can apply.
If there is both free estate and settled property you should
treat the claims by the legal personal representatives and trustees
entirely separately and calculate the overall loss at each
title.
