I4.320 Loss on sale of land — example

IHT, trusts and estates

I4.320 Loss on sale of land — example

I4.320 Loss on sale of land — example

Example — sale to beneficiary

E died leaving an estate which included three houses, Foxholes, Oakfield and Pinewood, valued at £400,000, £500,000 and £600,000, respectively.

The executors sold within three years of the death Foxholes for £300,000 and Oakfield for £550,000.

Pinewood was sold to a beneficiary for £600,000, when its market value was £630,000. The executors claimed relief.

The figures are:

PropertyValue on deathSale priceDifference

The denominator of the appropriate fraction is £100,000+£50,000=£150,000 (it does not include the £30,000 difference on the sale of Pinewood,

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