Inheritance Tax Relief: Claim for Loss on Sale of Land

March 20, 2026 · WOWERI

If you sell land or buildings from an estate at a loss, you may be eligible for Inheritance Tax relief. Use Form IHT38 to claim relief.

Introduction

If you are an heir or representative of a deceased person, you may need to sell land or buildings from the estate. If the sale is made at a loss, you may be eligible for Inheritance Tax relief. In this article, we will explain how to use Form IHT38 to claim relief.

Form IHT38

Form IHT38 is used to claim relief from Inheritance Tax when selling land or buildings from an estate at a loss. This form must be completed and submitted to the tax authority along with other required documents.

How to Complete Form IHT38

To complete Form IHT38, you will need to provide information about the sale, including:

• date of sale
• sale price
• value of the land or buildings at the time of the deceased's death
• amount of loss

You will also need to provide documents to support the sale, such as a sales contract or deed of transfer.

Conclusion

Claiming relief from Inheritance Tax when selling land or buildings from an estate at a loss can be a complex process. By using Form IHT38 and providing the necessary documents, you can claim relief and reduce the amount of tax payable.

Source: gov.uk