If an interest in land is sold within 3 years of the date of death, the sale may qualify for relief under both the following provisions
But because the two reliefs have different definitions of a
qualifying sale then this will not always be the case. You may find
that a sale may satisfy one but not the other of these provisions,
or indeed neither of the provisions.
Where both provisions apply and the taxpayers submit a claim
for both of the reliefs you should revalue the property by first
applying the loss on sale of land provisions. You should adjust the
sale price under IHTA84/S195 to retain the original basis of
valuation (
IHTM33132) with the related or other
property. Only then should you apply the rules on sales of related
property. The IHTA84/S176 adjustment will be the sale price without
the IHTA84/S195 adjustment.
