IHTM33124 | Loss on sale of land: changes in the interest or underlying land: structurally unsound property

Where there has been a sale of a structurally unsound property which was repaired between the date of death and the date of sale (IHTM33071) the sale price (IHTM33072) is reduced because the property has been improved, IHTA84/S193 (4).

You will need to ask the VOA (IHTM23203) for the value of the property:

• at the date of sale, reflecting the condition of the property as at the date of date of death excluding the value of the insurance policy, and

• at the date of death in its defective or damaged state.

The difference between the two values is the value of the loss on sale claim. The value of the policy or right of action should be treated as a separate asset of the estate.

You should refer the case to Technical if

• you have any doubt or difficulty with applying these instructions to your case, or

• the property is sold before being repaired.