Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Inheritance tax share loss relief

28 November 2022 / Geoffrey Todd
Issue: 4867 / Categories: Comment & Analysis
102288
A gilt-edged opportunity

Key points

  • Inheritance tax rules allow relief in cases where asset values were higher at the date of someone’s death than when their personal representatives come to sell them.
  • The relief which enables substitution of the value actually realised instead of the value at the date of death is found in IHTA 1984 s 178 to s 189.
  • The shares sold must be qualifying assets – gilts fall within this definition.
  • The claim is made by submitting form IHT35 to HMRC.
  • If someone dies with qualifying investments in both their personal estate and an interest in possession trust of which they are the income beneficiary share loss relief can be claimed in both (or either).

Volatility in the markets is nothing new but in recent months we have seen turmoil not just for equities but also less usually for gilts. At such times ...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

back to top icon