628-600 Reinvestment causing restriction of relief
The Inheritance Tax Act 1984, s. 187(3) applies where the relief has been affected by s. 180 (¶628-150supra), so that relief has been reduced by a fraction which is referred to in s. 187(3) as the relevant proportion. (This definition of ‘relevant proportion’ is found in s. 178(1)). If the value on death exceeds the sale price, the value attributed to that investment is the sale value plus the relevant proportion of the difference between the value on death and the sale price. If, on the other hand, the sale price exceeds the value on death, the value attributed is the sale value less the relevant proportion of the difference between the value on death and the sale price.