Inheritance Tax Act 1984 section 181

Capital receipts

Section 181 requires that capital payments received in respect of qualifying investments from a deceased's estate are added back to the sale proceeds when calculating the loss on sale relief under section 179.

• Where qualifying investments from a deceased's estate are sold within 12 months of death, any capital payments received in respect of those investments must be added to the sale price for the purposes of the loss on sale relief.
• Capital payments received at any time after death count, whether received during or after the 12-month sale window, provided the investments themselves are sold within that window.
• If the appropriate person receives a provisional allotment of shares or debentures in respect of qualifying investments and disposes of the rights, the consideration received is treated as a capital payment attributable to those investments.
• A capital payment is any money or money's worth that is not income for income tax purposes, but does not include the actual sale price of the investment itself.