IHTM09754 | Sales of related property, etc: conditions for relief

From HM Revenue & Customs · Inheritance Tax Manual

The following conditions must be satisfied before relief can be given for sales of related property

  • the relief must be claimed,

  • the sold property must have originally been valued under the related property provisions or in certain circumstances in conjunction with other property in the deceased’s estate ()

  • the sales must be by the personal representatives or by the person’s in whom the property was vested () immediately after the death

  • the sale must be at arm’s length,

  • the sale price must be freely negotiated at the time of the sale,

  • the sale must not be made in conjunction with a sale of the related or other property with which it was originally valued ()

  • there must be no connection between those selling the property and the purchaser ()

  • those selling the property must not have a right to acquire the property or an interest in it ()

  • the sale price must be less than the original value ().