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