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I4.312 Loss on sale of land and IHT—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