Inheritance Tax Act 1984 section 139

Other property

Section 139 explains how to adjust the market value of transferred property — other than shares or interests in land — when claiming fall in value relief under section 131, where the property has changed between the date of the original chargeable transfer and the relevant date (death or sale).

• If the property has changed between the transfer date and the relevant date, and that change has reduced its value, the market value on the relevant date is increased to reflect what it would have been without the change
• If the change has instead increased the property's value, the market value on the relevant date is reduced to what it would have been had the property remained unchanged
• Where benefits derived from the property between the transfer date and the relevant date exceed a reasonable return on its market value at the time of the transfer, those benefits are added to the market value on the relevant date
• The adjustments ensure that fall in value relief reflects genuine market movements rather than changes in the nature of the property itself or excessive income extraction