IHT share loss relief – tune in

In challenging market conditions, it’s likely that some bereft individuals will inherit investments that have fallen in value. Through IHT share loss relief, people inheriting can be entitled to claim a tax rebate when they sell certain qualifying investments at a loss. Strict rules, criteria and exemptions apply however. For example, to be eligible for the relief, the sale of the qualifying investment (shares listed on a recognised stock exchange excluding AIM, government bonds and / or holdings in investment funds) has to be within 12 months of the date of death.

Interestingly, according to recent data¹, few people reclaim the overpaid tax, with just 1,640 taxpayers a year on average (between 2014 and 2019) applying for refunds.

¹FoI request Boodle Hatfield, 2022