Section 113 — Inheritance Tax Act 1984: Contracts for sale.

Contracts for sale. 113 Where any property would be relevant business property in relation to a transfer of value but a binding contract for its sale has been entered into at the time of the transfer, it is not relevant business property in relation to the transfer unless—

a the property is a business or interest in a business and the sale is to a company which is to carry on the business and is made in consideration wholly or mainly of shares in or securities of that company, or b the property is shares in or securities of a company and the sale is made for the purpose of reconstruction or amalgamation.