IHTM34244 - Attribution of values to specific investments: purchases of qualifying investments

»Ê¹ÚÌåÓýapp sale value of specific investments may need to be revised if loss on sale of shares relief has been restricted (IHTM34211) under IHTA84/S180 (1) following the purchase of qualifying investments (IHTM34131), IHTA84/S187 (3).

»Ê¹ÚÌåÓýapp effect of IHTA84/S187 (3) on specific investments will depend on whether:

  • the value of the investment on death exceeds its sale price â€� the revised value will be the aggregate of its sale price and an amount equal to the relevant proportion of the difference between its value on death and its sale price, or
  • the sale price exceeds its value on death â€� the revised value is the sale price less an amount equal to the ‘relevant proportionâ€� of the difference between its value on death and its sale price.

»Ê¹ÚÌåÓýapp relevant proportion (IHTM34212) is the same as that used in IHTA84/S180 (1).  You must include any capital payments (IHTM34177) in arriving at the sale price of the investments.  In addition, payments of call (IHTM34242) or consideration (IHTM34243) given for a new holding will reduce the sale value.

»Ê¹ÚÌåÓýappre is an example showing how the value of investments are revised under IHTA84/S187 (3) on the next page (IHTM34245).