Inheritance Tax Act 1984 section 198

Date of sale or purchase

Section 198 establishes the rules for determining the effective date of a sale or purchase of an interest in land for the purposes of the related property relief provisions in this chapter.

• The date of sale or purchase is normally the date the contract is entered into, not the date of completion.
• Where the transaction results from an option exercised within six months of being granted, the date is taken as the date the option was originally granted.
• For compulsory acquisitions, the date of sale is generally the earlier of the date compensation is agreed or determined, or the date the acquiring authority enters the land.
• Where the acquisition is made under a general vesting declaration (in England, Scotland or Wales) or a vesting order (in Northern Ireland), the date of sale is the last day of the vesting period or the date the vesting order becomes operative.