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

The ATT has submitted an Autumn 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 to benefit from this relief. There are a number of causes of delay, from difficulties getting valuations of assets to delays in processing probate applications by HMCTS. Such delays are generally outside of the control of the executors. 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.

We have made similar representations on this issue in the past and members report that they are still regularly seeing cases where it has taken over 12 months to obtain a grant of probate.