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Whether foreign settled property is excluded property (IHTM04251)听depends on the date of the chargeable event and the date of death of the settlor.听

Where the chargeable event occurs before 6 April 2025, foreign settled property is excluded property where the settlor was domiciled (IHTM13000) outside the UK at the time when the property (IHTM04030) became comprised听in the settlement.听听

Where the chargeable event occurs on or after 6 April 2025, whether foreign settled property is excluded property depends on whether the settlor is alive at the date of the chargeable event.鈥�听

For chargeable events on or after 6 April 2025, if the settlor was alive at the date of the chargeable event, foreign settled property will be excluded property if the settlor was not a long-term UK resident (IHTM47000)听at that date.鈥�听

For chargeable events on or after 6 April 2025, if the settlor had died before the date of the chargeable event, then:鈥�听

The status听of the trustees (IHTM16050) and beneficiaries is not relevant.听But for qualifying interest in possession settlements (IHTM16061) foreign settled property is only excluded property at times on or after 6 April 2025 if the life tenant is also not a long-term UK resident.听听听

However, a claim for tax arising on the death of a person entitled to a qualifying鈥�interest in possession in foreign property settled by a UK domiciliary may be affected by the application of a Double听Taxation Convention or Agreement (IHTM27161)鈥痑s it鈥痬ay override the general rule above. This will usually involve a pre-1975 Double Taxation Agreement and a settlement鈥痺here the鈥€榩roper law鈥欌€痠s claimed to be鈥痭on-UK. Seek advice from Technical if this is claimed.听
听
If the settlement is a鈥痳elevant property鈥痶rust (IHTM42161), the anti-avoidance provisions of IHTA84/S80 to IHTA84/S82 may mean that the long-term UK residence or domicile of some person(s) other than the settlor is also of importance.听
听
The position of a settled reversionary interest is considered at鈥�IHTM04286.