Sale of shares from a deceased estate

Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance

Sale of shares from a deceased estate

Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance
imgtext

This guidance note explains how postmortem relief for inheritance tax (IHT) can be obtained where quoted shares or securities are sold by executors or trustees of a qualifying interest in possession taxed on death within a year of death.

Sale of shares relief ― principles

If shares are sold in the year following death at an overall loss, relief may be available by substituting the sale price of the sold shares for their death values, thus generating a repayment of IHT. The sale must take place by the appropriate person (see below).

The basic conditions for claiming the relief are summarised as follows. Each condition is discussed further below:

  1. •

    the shares sold must be ‘qualifying investments’

  2. •

    the sales must occur within 12 months of death

  3. •

    the shares must be sold by the ‘appropriate person’

  4. •

    there must be an overall loss on the sales of the qualifying investments

IHTA 1984, s 179(1)

This relief does not apply to shares transferred in the deceased’s lifetime,

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™
Powered by Tolley+™

Popular Articles

Substantial shareholding exemption ― overview

Substantial shareholding exemption ― overviewThe substantial shareholdings exemption (SSE) provides a complete exemption from the liability to corporation tax on the gains generated from qualifying disposals of shares and interests in shares by qualifying companies. No claim is required. Provided

14 Jul 2020 13:44 | Produced by Tolley Read more Read more

Repairs and renewals

Repairs and renewalsThe key consideration in determining whether expenditure on repairs and renewals is allowable as a deduction for tax purposes is whether it is capital or revenue in nature. In some cases, it can be relatively straightforward to identify revenue repairs. HMRC provides the

14 Jul 2020 13:23 | Produced by Tolley Read more Read more

Income tax paid on behalf of employee

Income tax paid on behalf of employeeIntroductionEmployers may wish to make payments of employment income to an employee / director without the employee suffering a tax or NIC cost on that pay. In other words, the employer wants to pay an amount net of tax and NIC. In some instances, often with

14 Jul 2020 11:58 | Produced by Tolley in association with Paul Tew Read more Read more