IHTM33074 - Loss on sale of land: sales: sales in the fourth year after death

Relief for sales in the fourth year after the death was introduced in the 1993 Finance Act and only applies for deaths on or after 16 March 1990, IHTA/S197A.

There are some special rules that apply to sales in the fourth year. As a result

• a sale in the fourth year for more than the date of death value (IHTM33100) is not taken into account
• where an adjustment is necessary under IHTA84/S192 (1) because of a purchase (IHTM33161) any sale made in the fourth year is ignored.
• when the only claim made is for a sale in the fourth year IHTA84/S192 cannot apply at all so that any purchase made is disregarded.
• when a non-qualifying sale (IHTM33081) is made in the fourth year and results in a sale price greater than the value on death, IHTA84/S196 does not apply so no adjustment to the sale price is required.
• FA93/S197A does not apply to a sale involving a compulsory purchase (IHTM33091).