IHTM34151 - Sales: the basic condition

The relief only applies to sales of qualifying investments (IHTM34131) within the 12 months immediately following the date of death, IHTA84/S179 (1).

A sale is an essential element of the relief and all sales within 12 months of death must be taken into account.  But in addition to straightforward sales of shareholdings, the exercise of an option to sell qualifying investments is also treated as a sale for this purpose as are, subject to certain conditions applying,

• appropriations (IHTM34153), and
• exchanges (IHTM34154).

Special rules also apply to unsaleable investments (IHTM34155).

If the sale of qualifying investments does not take place on the open market you should refer the claim to Technical (IHTM01081) for advice.    

The redemption of stocks or bonds is not regarded as a sale.