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HMRC internal manual

Inheritance Tax Manual

Transfers by close companies: foreign aspects

Where an individual is domiciled outside of the UK (IHTM13002), the provisions of IHTA84/S94 (2)(b) need to be considered. These provisions affect the amount apportioned to the participator. They do this by excluding from that amount any part of the value that is attributable to the value of property outside the UK.

Foreign company

A transfer of value by

  • a company incorporated abroad (hence domiciled abroad - Gasque v IRC [1940] 2 KB 80), of
  • property situated abroad

is not excluded property since IHTA84/S6 (1) only applies to individuals.

However, if such a company

  • is resident abroad, and
  • makes a transfer of exempt Government securities within IHTA84/S6 (2),

they do qualify as excluded property.