Commentary

I4.302 Loss on sale of shares — detailed rules

IHT, trusts and estates

I4.302 Loss on sale of shares — detailed rules

I4.302 Loss on sale of shares — detailed rules

Broadly, the relief is an amount equal to the loss on the sale, cancellation or suspension, within 12 months after the death, of qualifying investments by the appropriate person, but this is subject to the detailed provisions explained below.

See I4.301A for the definition of these terms.

Cancellation

Cancellation of qualifying investments is taken into account1, if the cancellation occurs within the period of 12 months immediately following the date of the death, without the investments being replaced by other shares or securities and while they are still held by the appropriate person.

If cancellation occurs in these circumstances, the cancelled investments are treated as having been sold by the appropriate person for the nominal consideration of one pound immediately before the cancellation2.

Suspension

Suspension of qualifying investments from quotation or listing on a recognised stock exchange is taken into account3 if the suspension is current at the expiry of the period of 12 months immediately following the date of the death, the value of the investments at the death was greater than their value at the end of the 12-month period, and they are still held by the appropriate person at the end of the 12-month period.

If this is the

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial