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HMRC internal manual

Inheritance Tax Manual

Foreign element: offshore trust declaration S218

Under IHTA84/S218, where any person, in the course of a trade or profession carried onby them, other than the profession of a barrister, has been concerned with the making of asettlement and knows or has reason to believe

  • that the settlor was domiciled in the United Kingdom, and
  • that the trustees of the settlement are not or will not be resident in the United Kingdom,

that person must, within three months of the making of the settlement, make a return tothe Board stating the names and addresses of the settlor and of the trustees of thesettlement.

S218 does not apply if the trust is made by will or if an account IHT100 regarding thecreation of the trust has been delivered to us.

A penalty arises under IHTA84/S245A (1) if a person fails to make a return under S218within 3 months. (IHTM36010)

Action by Capital Taxes

  • A database of these notifications is kept by Lifetime Transfers Team Nottingham (IHT Compliance).
  • A cross reference for each notice is set up on ALF.
  • Lifetime Transfers Team acknowledge the notice, advising of the reference.
  • CNR are notified of the transfer.
  • Notices are stored in the Lifetime Transfers Team.

Some general information about the declaration and companies/EBTs is at IHTM42993.