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Loss on sale of land ― overview

Where land is sold from a deceased estate for less than the taxable amount at date of death, relief for the loss is granted by replacing the probate value with the later sale value in the calculation of inheritance tax.

In a simple case, where the only interest in land is the deceased’s residence which his executors sell to an unconnected person for less than its probate value, the claim should be straightforward. The lower sale price is substituted for the death value and following a recalculation, a tax repayment is made to the executors. The claims process is considered below.

However, all sales within the three-year period need to be considered as well as sales at a loss