I4.312 Loss on sale of land — overview
If an interest in land is comprised in a person's estate immediately before his death and is sold by the appropriate person within the period of four years immediately following the date of the death, and the appropriate person so claims1, then the value for the purposes of IHT of that interest is (subject to certain conditions — see I4.313–I4.319), its sale value2.
See I4.312A for the meaning of these terms.
But the value of any other interest in land comprised in that estate and sold within that period by the person making the claim acting in the same capacity must also be taken (subject to the following provisions) to be its sale value3. So in effect the aggregate of the sale values are substituted for the aggregate of the values at the date of death, whether higher or lower in each case.
This is subject to an important exception for a sale of an interest in land in the fourth year after death where such a sale is only taken into account if it the sale value of the interest sold does not exceed its value on death4. In other words, where land is sold between three and four years after death, only losses need be included in the calculations.
Effect of making a claim and time limit
The effect of the relief is that persons accounting for IHT on a death who realise interests in land within four