IHTM42602 - Foreign element: foreign (excluded) property
Whether foreign settled property is excluded property (IHTM04251) depends on the date of the chargeable event and the date of death of the settlor.鈥€�听
See the details about foreign excluded property from听滨贬罢惭04271鈥�and (IHTM27220)听
Value for rate听
Excluded property is not relevant property and for transfers on or after 18 November 2015 is not included for the purposes of calculating the rate of tax. Before that date听the historic value of the excluded property is included for rate purposes. (滨贬罢惭42085鈥�补苍诲鈥�IHTM42114).鈥�听
Conversion to excluded property听
IHTA84/S65 (7)鈥共曰邂€�(8) provide that no proportionate exit charges arise if the鈥�听
property ceases to be situated in the UK and becomes excluded property, or鈥€€�听
UK funds are invested in exempt Government securities and become excluded property.鈥�(IHTM27250)鈥疶his applies equally to investments in authorised unit trusts and open-ended investment companies or听
if Schedule A1 (IHTM04311)鈥痭o longer applies鈥€�听
However, where property situated abroad is comprised听in a settlement and is relevant property because the settlor is long-term UK resident, there will be a proportionate charge if this becomes excluded property because the settlor loses their long-term UK residence status.鈥€�听
Property鈥痬oving between settlements鈥�听
Special鈥痳ules apply to assets鈥痓ecome comprised听in other settlements鈥痮r deemed听settlements.鈥�(IHTM42603)鈥�听
Reversionary interests听
Foreign reversions are covered at鈥�IHTM04286听