IHTM44054 - Pre-owned assets: exemptions: foreign element - long-term UK resident

Where a person is resident, but is not a long-term UK resident , the POA charge only applies to property that is situated in the UK, FA04/Sch15/para12(2).   

Prior to 6 April 2025 it was a person바카라 사이트™s domicile (taking into account the deemed domicile rules) rather than their long-term UK residence that applied. If not domiciled in the UK the POA charge applied only to property situated in the UK. 

Example 

Gregor, who is not a long-term UK resident but is resident in the UK, gives his French house to an offshore company which is 100% owned by him and continues to live there. This is a disposal of land, but there is no POA charge because of the exemption under FA04/Sch15/Para12(2). However Gregor owns the company shares that derive their value from the house, so he is also exempt under FA04/Sch15/Para11(1). If, after a period of time, Gregor becomes long-term UK resident, this exemption under FA04/Sch15 /Para12(2) will be lost. However, exemption under FA04/Sch15/Para11(1) (IHTM44041) is still available as Gregor바카라 사이트™s estate includes property (the company shares) which derives its value from the relevant property. 

If Gregor had given his UK house to the offshore company and continued to live there, a POA charge potentially arises. The exemption under FA04/Sch15/Para12(2) does not apply because the property is situated in the UK. However, exemption under FA04/Sch15/Para11(1) is still available as Gregor바카라 사이트™s estate includes property (the company shares) which derives its value from the relevant property.