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HMRC internal manual

Inheritance Tax Manual

Foreign property: investigation of form IHT417: Compliance Group

If you work in Compliance the following instructions apply to any cases where there is foreign property.

Foreign property should be listed on the form IHT417. But it is often listed elsewhere in the account in error. This is often the case with foreign shares or bank accounts. If the foreign property has not been correctly entered on COMPASS (IHTM31101) because of this sort of error you must amend the datacapture so that the foreign property is shown correctly as soon as you receive the file.

If the domicile (IHTM13000) of the taxpayer or their surviving spouse or civil partner (IHTM11032) has not been decided, or if you have reason to believe that they are non UK domiciled, you must determine the domicile of the relevant taxpayer.

It is your task to value all foreign assets once domicile and the situs of assets (IHTM27071) are agreed. If the taxpayer or agent disputes either of these issues the file must be referred immediately to Technical with a suitable memo attached.

If at any time you have reason to believe that the taxpayer may have problems paying the tax, and most of the assets or the personal representatives are abroad the papers must be referred to DMB for appropriate action. (IHTM38201)

Late account penalties must also be considered, as usual, with foreign property (IHTM36021).

Detailed instructions on the valuation of foreign assets are contained in the rest of this section of guidance (IHTM27022).