IHTM33050 – Loss on sale of land: appropriate person

The ‘appropriate person’ is defined

• as the person liable for the inheritance tax attributable to the value of interest in land under consideration, or
• where there is more than one such person, as the person liable, who is in fact paying the tax, IHTA84/S190 (1).

The reference in IHTA84/S190 (1) to the ‘person liable for inheritance tax attributable ‘ to the land means the person who either paid the tax or has an obligation to pay it. If there is no tax payable on the interest, there is no person liable to pay the tax. This point was determined in the case of Stoner v IRC [2001] SPC 288.

In most cases the appropriate person will be the personal representative ( IHTM05012) of the deceased or the trustees ( IHTM16050) of a settlement. For the purposes of this relief both are to be treated as a single and continuing body of persons distinct from the persons who may from time to time act in such capacity, IHTA84/S190 (3).

In practice it may be possible to regard a sale as made by the appropriate person if it is made on their behalf.

You should refer any case where it is claimed that land is sold on behalf of the appropriate person to TG.