Inheritance Tax Act 1984 section 197

Compulsory acquisition more than three years after death

Section 197 extends the relief available under Chapter 4 (sale of land from a deceased's estate) to cases where land is compulsorily acquired more than three years after the date of death, provided certain conditions are met.

• Where an authority with compulsory purchase powers acquires an interest in land more than three years after death, the sale can still qualify for relief if the notice to treat was served before death or within the three-year period
• The relief only applies where the sale results in a loss — that is, the sale value must not exceed the value of the interest at the date of death
• A compulsory acquisition that qualifies under this section is not counted when determining whether other land sales have been offset by purchases under section 192
• If the only claim for relief relates to a compulsory acquisition under this section, the adjustment rules in section 192 for purchases do not apply at all