Inheritance Tax Act 1984 Schedule 5 paragraph 6A

Requirements of sale

Schedule 5 paragraph 6A sets out the conditions a sale must meet in order to qualify for the relief provisions relating to the sale of shares or securities.

• A qualifying sale must not be intended to give anyone a gratuitous (i.e. free or gift-like) benefit.
• The sale must be either a genuine arm's length transaction between unconnected parties, or one conducted on terms that would be expected in such a transaction.
• Both conditions — no gratuitous benefit and arm's length terms — must be satisfied for the sale to qualify.
• If either condition is not met, the sale will not comply and the associated relief will not be available.