IHTM04271 - Foreign settled property: introduction

Property (IHTM04030) situated abroad and comprised in a settlement (IHTM16042) is excluded property (IHTM04251) at times when the settlor is not a long-term UK resident (IHTM47000) 

Where a settlor dies on or after 6 April 2025, property situated abroad and comprised in the settlement is excluded property if the settlor was not a long-term UK resident immediately before their death.   

Where a settlor dies before 6 April 2025, property situated abroad and comprised in a settlement is excluded property if the settlor was domiciled (IHTM13000) outside the UK at the time the property became comprised in it, IHTA84/S48 (3).  

In the case of property settled by Will, or under the rules of intestacy, it will be the date of the testator바카라 사이트™s or intestate바카라 사이트™s death that is relevant. 

The excluded property status of property which becomes comprised in a settlement after the settlor바카라 사이트™s death will depend upon the long-term UK residence status of the person who contributed the assets to the settlement. That person is the settlor and will be treated as having made a separate settlement (IHTM42253). 

These tests do not apply to a reversionary interest (IHTM04281) in that settled property, IHTA84/S48ZA(11). 

Your investigation should follow the principles in IHTM바카라 사이트¯Chapter 9 (IHTM09000) bearing in mind the special factors바카라 사이트¯applicable to excluded property. 

There are additional requirements for바카라 사이트¯relevant property바카라 사이트¯trusts (IHTM42161)바카라 사이트¯that fall within certain anti-avoidance provisions, IHTA84/S80 to IHTA84/S82. You will therefore need to determine whether a settlement is a qualifying바카라 사이트¯interest in possession (IIP) (IHTM16062) trust or바카라 사이트¯relevant property바카라 사이트¯trust for Inheritance Tax purposes and, if so, whether the additional requirements apply and (where appropriate) are satisfied. You should refer to Technical any case where these provisions appear to be in point. 

Where foreign settled property is excluded property:

  • you should not seek to tax that property on the termination or coming to an end (IHTM04084) of a qualifying바카라 사이트¯IIP in the property, IHTA84/S53 (1) 

  • if the trusts applying to the property are바카라 사이트¯not a qualifying IIP,바카라 사이트¯then in determining the rate of any바카라 사이트¯relevant property바카라 사이트¯trust charge, you should disregard that property for the period(s) when it was excluded property.