HMRC internal manual

Inheritance Tax Manual

IHTM06021 - Rules about excepted estates: foreign domiciliaries

For all deaths before 6 April 2002 an IHT400 (IHTM10021) has to be delivered if the deceased was domiciled (IHTM13021) outside the UK at the date of their death. If the death was before 18 March 1986 the appropriate form is form Cap 201.

SI2002/1733 Inheritance Tax (Delivery of Accounts) (Excepted Estates) Regulations 2002 relaxed this rule for deaths occurring on or after 6 April 2002. Where all the conditions listed below are met, the estate will qualify as an excepted estate. The conditions are that the deceased:

  • was domiciled outside the UK at the date of their death
  • had never been domiciled in the UK during their lifetime
  • had never been deemed domiciled (IHTM13024) in the UK for the purposes of IHTA1984/S267 and
  • the value of their estate situated in the UK consists only of cash or quoted shares or securities passing under their will (IHTM12041) or intestacy (IHTM12101) or by survivorship, the gross value of which does not exceed the cash limits shown in the table below.
  • did not make any gifts from their UK assets of more than £3,000 per year within 7 years of the date of death.

For deaths on or after 1 January 2022 there is an additional condition. The deceased

  • did not own any indirect interests in UK residential property under IHTA84/Sch A1 (IHTM04311)
Deaths (all dates inclusive) Gross value of estate
6 Apr 2002 to 31 Aug 2006 £100,000
1 Sept 2006 onwards £150,000

If any of the above conditions are not satisfied a form IHT400 must be delivered.