Inheritance Tax Act 1984 section 185

Acquisition of like investments

Section 185 deals with how sales from a combined holding of investments are apportioned between those held at death and those acquired afterwards, for the purposes of the sale of shares relief provisions.

• Where the appropriate person holds a mixed pool of investments — some from the deceased's estate and some acquired after death — and sells part of that pool within twelve months of death, the sold investments must be split proportionately between the two types
• The apportionment is based on the ratio of estate investments to acquired investments in the combined holding immediately before the sale
• Investments held in the capacity of personal representative or trustee are kept separate from investments of the same description held by the same person in any other capacity
• Two investments are not treated as being of the same description if they are separately listed on a stock exchange