IHTM33182 - Loss on sale of land: calculating the loss on a sale of joint property: disadvantageous claim
Where the interest sold involves joint property (IHTM15000) it is possible for the sale price (IHTM33072) to be less than the date of death value (IHTM33100) yet there will be no loss on sale. This can arise if a share only in land is included in the estate, but the entirety is sold.
The discounted date of death value agreed for, say, the deceased바카라 사이트檚 one-half share of a property may turn out to be less than one-half of the share of the gross proceeds of sale from the whole of the property.
Example
The deceased owned a half-share of 바카라 사이트楾he Gallops바카라 사이트�.
At the date of death 바카라 사이트楾he Gallops바카라 사이트� was valued at 拢200,000 for the whole, 拢90,000 for the deceased바카라 사이트檚 half share.
A year after the death, the whole property was sold for 拢190,000.
The sale value of the property for the purposes of IHTA84/S191 is an arithmetic half share of the gross proceeds of sale, which is 拢95,000.
So, any claim would not be in the taxpayer바카라 사이트檚 favour as additional Inheritance Tax would be payable as a result of the claim.
You should consider this before asking the taxpayer to complete a form IHT38 (IHTM33022) to help prevent them making a disadvantageous claim (IHTM33013).