Inheritance Tax Act 1984 section 197A

Sales in fourth year after death

Section 197A extends the land sale relief provisions to allow certain sales made in the fourth year after death to qualify for relief, subject to specific conditions and restrictions.

• Where land from a deceased's estate is sold in the fourth year after death (and not by compulsory acquisition), it can be treated as if sold within the normal three-year relief window
• The relief does not apply if the sale value of the land exceeds its value at the date of death — only sales at a loss qualify
• Fourth-year sales are excluded from the purchase adjustment rules, meaning any purchases of land are disregarded when the only claim relates to fourth-year sales
• Fourth-year sales are also disregarded when calculating adjustments for non-qualifying sales to connected parties or beneficiaries