IHTM04260 | Foreign `unsettled` property

‘Unsettled’ is a convenient description of property (IHTM04030) which is owned absolutely, and not held in a settlement (IHTM16042). 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 not a long-term UK resident (IHTM47000) (transfers on or after 6 April 2025) or was domiciled (IHTM13000) outside the UK (transfers before 6 April 2025), IHTA84/S6 (1).

Conversely, all unsettled property beneficially owned by a long-term UK resident (transfers on or after 6 April 2025) or a UK domiciliary (transfers before 6 April 2025) is within the scope of Inheritance Tax, regardless of the locality (IHTM27071) of the property.

Your investigation should follow the principles in IHTM Chapter 9 (IHTM09000) bearing in mind the special factors relevant to excluded property.

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