Red line for falling shares

ATT Budget Representation - IHT reliefs on shares which have lost value

19 February, 2024

The ATT has submitted a Spring Budget 2024 representation asking for the period in which executors can sell shares at a loss and claim relief from Inheritance tax to be extended

Where executors of estates sell shares which have fallen in value since the date of death, they can claim relief from Inheritance tax (IHT) for the value that has been lost, provided that the shares are sold within 12 months of the date of death. However, many estates are struggling to obtain the required grant of probate in time due to ongoing delays in the processing of probate applications. These delays are outside of their control. The ATT considers that executors need to be given a longer period in which to sell shares from the estate and claim relief for a loss on sale. We think that the existing 12-month window needs to be extended to 18 or 24 months from the date of death, ideally permanently but at least on a temporary basis until probate office delays are resolved.

We have made similar representations on this issue in the past but the problem remains as probate application processing remains slow.