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Excluded property and situs of assets


Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance
tag-icon Autumn Budget 2024

Excluded property and situs of assets


Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance
tag-icon Autumn Budget 2024
imgtext

This guidance note explains the concept of excluded property and its particular relevance for non-domiciled individuals (for transfers before 6 April 2025) and individuals who are not long-term UK resident (for transfers on or after 6 April 2025). It discusses the lex situs rules and how the excluded property rules apply to settled property. It also details the treatment of reversionary interests and decorations and awards which are excluded property for all, regardless of domicile. Finally it covers how to deal with liabilities in respect of excluded property.

The concept of excluded property

Inheritance tax (IHT) does not apply to excluded property. Specifically, this means that:

  1. β€’

    excluded property does not fall into an individual’s chargeable estate for IHT on death

  2. β€’

    excluded property is not included when calculating any transfer of value made by an individual (including that arising on the termination of a qualifying interest in possession)

  3. β€’

    excluded property is not β€˜relevant property’, and therefore not subject to the periodic 10-year or exit charges on trusts

  4. β€’

    liabilities relating

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  • 14 Feb 2025 08:55

Home/ Tolley Tax Guidance/ Trusts and Inheritance Tax / Advising on offshore matters

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