Inheritance Tax Act 1984 section 186B

Suspended investments

Section 186B provides relief where qualifying investments held at death have their stock exchange listing or market dealing suspended throughout the twelve months following the date of death, and their value has fallen during that period.

• The section applies to qualifying investments in the deceased's estate where the listing on a recognised stock exchange or dealing on the Unlisted Securities Market is suspended at the end of the twelve-month period following death (the "relevant period").
• If the appropriate person still holds the investments at the end of that twelve-month period and their value at death exceeds their value at that point, the investments are treated as having been sold immediately before the end of that period at a price equal to their value at that time.
• This relief applies to all suspensions, not only those arising because a company has collapsed or become insolvent.
• Where investments are brought into the relief calculation under section 179(1) by virtue of this section, the normal adjustment for changes in holding (the words from "or" to the end in paragraph (b) of section 179(1)) is disapplied for those investments.