Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Inheritance Tax Manual

HM Revenue & Customs
, see all updates

Foreign `unsettled` property

‘Unsettled’ is a convenient description of property (IHTM04030) which is owned absolutely, and not held in a settlement. (IHTM16000) Unsettled property which, at the time of its transfer, is situated abroad is excluded property (IHTM04251) if the individual/transferor beneficially entitled (IHTM04031) to it is also domiciled (IHTM13000) outside the UK at that time, IHTA84/S6 (1).

Conversely, all unsettled property beneficially owned by an UK domiciliary is within the scope of IHT, regardless of the locality (IHTM27071) of the property.

Your investigation should follow the principles in IHTM Section 9 (IHTM09000) bearing in mind the special factors (IHTM04251) relevant to excluded property.

If you have any doubt about whether the property concerned is ‘unsettled’ or ‘settled’ you should consult TG.